2008 (1) TMI 752

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....e of the Modvat credit of Rs. 4,36,075/-. 2. Heard both sides and perused the records. 3. The appellants are engaged in the manufacture of Cane Sugar, Molasses and DEA falling under Tariff Headings 17.01, 17.03 and 2204.10 respectively of Central Excise Tariff Act, 1985. 4. The issue involved in the instant appeal is whether Cenvat credit is admissible on M.S. Plate, M.S. Channel, H.R. Sheet, Tor Steel, R.S. Joist, H.R. Coil, CTD Bars, Flat Steel, Shape and Section and H.R. Slide Slitting (all items of Chapter 72) as "capital goods" under Rule 2(b) of Cenvat Credit Rules, 2002. The case relates to the period July, 2003 to August, 2003. The functional uses of the above referred items, as detailed in reply to the SCN b....

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....S. No. (iv) above (xiv)    HR Slide Slitting - it is 6 mm plate used in erection Juice Sulphiter, Juice weighing scale, Sugar grader & Hopper. 3. The functional use of the impugned goods would indicate that these are used as components, spares or accessories for repair and maintenance or for manufacture and fabrication of the machineries (falling under Chapter Heading No. 84.38), which in turn are used for the manufacture of sugar and molasses. Therefore, the impugned goods are eligible to the Cenvat credit in terms of Rule 2(b)(iii) of the Cenvat Credit Rules, 2002. I find that the similar items like Plain Plates, Steel Flats, Alloy Steel Bars, Joists and Aluminum Sheets etc. were held to be eligible capital goods....