2005 (11) TMI 284

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Ratnam, Advocate, for the Respondent. [Order per : S.L. Peeran, Member (J)].- The Revenue is aggrieved with the Commissioner's (Appeal) Order No. 39/2003-CE, dated 24-9-2003 extending Modvat credit to CRSS sheets used for fabrication of Service Tanks and holding it to be a component of storage tank. He noted that without this item, fabrication of storage tank is not possible. He has relied....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....L.T. 317, wherein storage tanks used for storing raw materials like hydrofluoric acid, which is corrosive in nature and has to be stored in a specially built tanks for the purpose of manufacture of finished goods, has been held to be eligible for credit under Rule 57Q of CE Rules. He has also noted the ruling of STS Chemical Limited v. CCE, Mumbai-III reported in 2001 (132) E.L.T. 704 (Tri - Mumba....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fied in explanation 1(c) for availing Modvat credit as capital goods need not be used in the manufacture of final product. The only requirement is that they should be used in the factory of production. It is also noted that capital goods can be machinery, machines, plant equipment, apparatus, tools or appliances. Therefore, the Commissioner (Appeal) has allowed the assessee's claim, which is chall....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....issioner directly apply to the facts of the case and he prays for the dismissal of the appeal. 5. On a careful consideration, we notice that the Commissioner has rightly considered the test to be applied for treating an item for grant of credit. The ratio of all the judgments noted by him decides the issue in assessee's favour. The citations referred to by the Counsel, which are cited (sup....