2006 (1) TMI 504

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.... and Spare packed bed for scrubber was imported by the respondents and they availed Modvat credit on the said items as capital goods. Show cause notice was issued to the respondents for denial credit on the said item on the ground that these are chemical media and would not fall under the category capital goods. The respondents contested the show cause notice on the ground that these chemical media are used for separation of impurities from the intake air and are installed in the D.G. sets. The adjudicating authority confirmed the demand against which on appeal the Commissioner (Appeals) allowed the appeal of the respondents coming to the conclusion that the said product fall under Heading No. 84.21 and are covered under the capital goods. ....

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.... third item involving credit of Rs. 66,219.45 is not covered under capital goods category. That Modvat credit on Spare packed bed for scrubber C.S.H. 38.23 as capital goods is not admissible as the said item is a chemical media for the separation of H2S and allied sulphur impurities from intake Air. Thus has no relation to the manufacturing process for production of final product. The party has claimed this item as capital goods which is not correct. Therefore the credit on this item is not available in input category in view of the decision of Hon'ble Tribunal in the case of M/s. Surya Roshni Ltd., 2001 (128) E.L.T. 293 (Tri.-L.B)." 5. From the above it can be seen that they are only disputing that the inputs do not fall under Head....

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...., & 90.24 to 90.31. (ii)     auxiliary plants  falling under heading No. 84.04 for use with boilers of heading No. 84.02; (iii)    I.C. engines (other engines of motor vehicle, falling under heading No. 84.07 or 84.08; (iv)    Compressors (other than of a kind used for refrigerating and air-conditioning applications) falling under heading No. 84.14; (v)     Electric generating sets (of output exceeding 75 K.V.A.) falling under heading No. 85.02; (vi)    Transformers (of power handling capacity exceeding 75 K.V.A.) falling under heading No. 85.04; (vii)   Goods (other than for medical use) of heading No. 90.22; (viii)&nbsp....