2001 (8) TMI 357

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....in the respondents' factory were eligible capital goods or inputs under Rule 57Q or Rule 57A, as the case may be, for the purpose of taking Modvat credit during the material period. The said goods are the following : (a) Welding Electrodes. (b) Clean Flow Tulsion T-40 and Tulsion A27 GEL. (c) CAFJ Sheets/AMJ 429 OIL EPS. (d) Aquat and Boiler Plus. (e) White Oil. (f) V. Belt. 2. The adjudicating [authority] disallowed Modvat credit of the duty paid on the above items, on the ground that they were not eligible capital goods or inputs. In respect of V. Belts, Modvat credit was disallowed on a further ground that the assessee did not produce valid duty-paying documents covering the said go....

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.... inputs under Rule 57A or as capital goods under Rule 57Q for the purpose of Modvat credit. It has also been stated by the appellant that, in the absence of duty-paying document, Modvat credit cannot be allowed on V. Belt. The appellant has raised a further ground that the Tribunal's decision in Kalyani Steels Ltd. v. CCE, Pune [1998 (99) E.L.T. 620] relied on by the ld. Commissioner (Appeals) is not relevant inasmuch as the question involved in that case was relating to non-filing of Modvat declaration and not the modvatability of the goods involved as in the instant case. Ld. SDR Shri A.S. Bedi has reiterated all these grounds and prayed for setting aside the order impugned. Ld. Advocate Shri Harbans Singh for the respondents has opposed ....

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..... The appellant has stated that the main function of the items was to keep boiler descaled for increasing the efficiency of production of steam. Again, I hardly see any difference between descaling of boiler and maintenance of boiler. Thus, in respect of the items, the finding of the ld. Commissioner (Appeals) stands accepted by the appellant. As regards CAFJ Sheets/AMJ 429 OIL EFS, the Commissioner (Appeals) held that these items were used as packing in the steam pipes to check and prevent leakage. The appellant has also stated the use to the same effect. Hence there is no ground for the appellant for challenging the decision of the Commissioner (Appeals) in relation to the goods under consideration. As regards Aquat and Boiler Plus, the f....