2007 (1) TMI 440

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....der]. -  Heard both sides and perused record. 2. The appellant is a manufacturer of organic chemicals. For their acetic acid plant, it purchased a 'refrigeration package' unit and took Modvat credit, treating the item as a component of the plant. Under the impugned order, credit has been denied, upon a finding that items falling under heading No. 8418.10 of Central Excise Tariff Act, 1....

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.... and Customs have clarified under Circular No. 276/110/96-TRU dated 2-12-1996 to this effect. That clarification is as under :- "4. Accordingly, it is clarified that all parts, components, accessories, which are to be used with capital goods of clauses (a) to (c) of Explanation (1) of Rule 57Q and classifiable under any chapter heading are  eligible for availment of Modvat credit." The subm....

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....harmaceutical products" are eligible for Modvat credit. It is being pointed out that this judgment of Tribunal was upheld in appeal by the Hon'ble Supreme Court [Commissioner v. Tablets India Limited as reported at 2006 (199) E.L.T. A181 (S.C.)]. 5. The provision sub-rule (5) in regard to components, spares etc. in Rule 57Q makes no reference to tariff classification. Therefore, classificati....