TaxTMI 
TaxTMI 
2012 (11) TMI 196
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....were initiated. This is the second round of litigation. The impugned order has been passed consequent to directions of this Tribunal in the Order No. A/1440/WZB/AHD/2008, dated 24-7-2008 [2008 (232) E.L.T. 850 (Tri.-Ahmd.)]. Out of the several capital goods on which credit had been disallowed earlier, after the remand proceedings, there is only one item in dispute and credit has been disallowed on this item. This item is empty chlorine cylinder. 2. Heard both the sides. 3. Learned counsel on behalf of the appellants submitted that the Tribunal had given very clear directions in the remand order in paragraph 7.4 which is applicable to empty chlorine cylinder. However, both the authorities have not considered the issue as per the ....
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....en clearly stated that cylinders were being used for transportation. In view of this fact wherein it has been shown that the cylinders are used only for transportation, the denial of credit by the lower authorities on the ground that chlorine cylinders received in May 2000 would not be eligible for cenvat credit is correct and in line with the directions in the remand order. 4. I have considered the submissions made by both the sides. Before I proceed further, it would be appropriate to reproduce the relevant portions of the remand order and the observations of the adjudicating authority and the Commissioner (Appeals) to make the facts clearer. "The lower authority has denied the benefit on the ground that cylinders are used for tran....
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....ders being sought to be disallowed, have been availed during the period prior to 1.3.2001. Therefore, the SCN has correctly sought to disallow modvat credit on empty chlorine cylinders. Therefore, the total amount of Rs. 4,16,800/- availed on chlorine cylinders is not admissible to the assessee." 6. Observations of the Commissioner (Appeals) are as under : "Item No. 5 - Empty Chlorine Cylinder :- CESTAT in its order has held that storage tank becomes eligible for credit only from 1-3-2001. The eligibility of credit is to be examined with regard to the provisions as on the date of receipt of the capital goods at the factory. In the instant case, the goods were received on 3-5-2000 and hence the adjudicating authority has rightly disa....
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....tter was remanded for verification of this aspect and the actual use. Further, in the last sentence it was also stated that after 1-3-2001, the credit would be admissible in any case. This is in the context of the utilization of the words "may be admissible" if the cylinder is used for dual purpose. In my opinion, this direction in the remand order were very clear and the lower authority was required to verify whether the cylinders were used exclusively for transportation or not and if it was used for transport as well as storage tank, the eligibility of credit could be examined. 9. The reproduced portions of the order of the original adjudicating authority and the appellate authority would show that they have considered only the date....