2003 (4) TMI 416

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....espondent. [Order per : S.S. Sekhon, Member (T)]. - After hearing both sides it is found that the issue involved in this appeal is the admissibility of Modvat credit of Rs. 2,12,873/- on certain chemicals which are used as coating material for coating insides of storage tanks in the appellant's factory. The claim was made under Rule 57Q and a declaration under Rule 57F was filed by the assessee....

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.... to 4 of the said table are also capital goods in terms of Rule 57Q. Whereas in this case the assessees have not explained whether the storage tanks, for which the material is used does fall under the category of goods specified under Sl. Nos. 1 to 4 of the said table..........." 3. The Commissioner (Appeals) came to the following conclusion to reject the credit : ".....I find that they are....

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....fied capital goods during the relevant period and the parts thereof were not held to be eligible by this decision of the Tribunal. Therefore, even if it is found to be an accessory, the same would not be eligible as the original tanks for which the subject goods could be accessories was not eligible. 5. The learned Advocate for the appellants has relied upon the decisions in the case of Sear....

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....erefore we cannot uphold the decision of the Commissioner (Appeals) in coming to a finding that the subject storage tanks fall under Chapter 73 and are thus not eligible inputs. In view of the fact that the two member decision of the Tribunal has held tanks to be eligible capital goods, this matter is also required to be remanded back for reconsideration to determine whether the subject tanks are ....