2010 (12) TMI 222

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....d on the inputs and capital goods as per the provisions of Central Excise Rules, 1944.  The period of dispute in these appeals is from March, 1998 to June 1998 and February, 1999.  During  March, 1998 to June 1998 period, the appellant among other items received Automatic I.T. spraying machine  for glass forming machine falling under sub heading 8424.80, that the  Cylinders containing gases falling under sub heading 2903.90,  Computer Console-740 PLC  falling under sub heading 8471.00.  Similarly, during the February, 1999 period, the appellants, among other items received an item called thermotracers falling under sub heading 8516.00, which was used as insulating material for fuel pipes.  The ap....

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....ers were upheld.  Against the orders of the Commissioner (Appeals) these appeals have been filed by the appellant.  Appeal No.E/1388/09 is in respect of thermotracers and Appeal No.E/1389/09 is in respect of other three items. 2. Heard both sides. 3. Shri Piyush kumar, Advocate, the learned Counsel appearing for the appellants, pleaded that the item thermotracer falling under sub heading 8516.00 of the tariff is used as insulating material in the fuel pipes and hence the same can be treated as component part of the machinery for manufacturing glass and glassware; that the Automatic I.T.System Spraying Machine is used for internal treatment of interior surface of just formed glass bottles to improve chemical durability and th....

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....Console 740-PLC fall under sub heading 8424.00, 2903.90 and 84.71.00 of the tariff respectively, that the heading 85.16 and sub heading 8424.00, 2903.90 and 8471.00 are excluded from the purview of the items mentioned in serial No.1 to 4 of Rule 57Q and these items cannot be treated as capital goods; that these items cannot be treated  as component parts of the machinery for manufacture of glass and glassware; that these items cannot be treated as inputs as the have not been used in or in relation to the manufacture of finished goods and hence, the same are not covered by the definition of input; that in view of this, the appellant were not eligible for modvat credit on these items and the same has been correctly denied, that since the....