2016 (3) TMI 67

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....ave availed modvat credit on Issc Standard Chlorine Containers amounting to Rs. 11,34,900.00, which appear to be not within the meaning of definition of input under Rule 57 A of the erstwhile Central Excise Rules, 1944. The Adjudicating Authority disallowed the modvat credit of Rs. 11,34,900.00 under Rule 57 A of the erstwhile Rules, 1944. It has also imposed penalty of Rs. 50,000.00 under Rule 173Q of the erstwhile Rules, 1944. By the impugned order, the Commissioner (Appeals) upheld the adjudication order. 2. Heard both sides and perused the case records. 3. Rule 57A of the erstwhile Rules, 1944 allowed credit of duty paid on goods, used in or relation to the manufacture of the final product. According to the Revenue, in the instant....

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....o the cylinders used for storing the liquid. All the earlier decisions were heard by the Tribunal in the case of C.C.Ex., Hyderabad-III v. B.O.C. India Ltd. reported in 2000 (36) RLT-910 (CEGAT). Cylinders for storing Oxygen Gas were held to be Capital Goods under the provisions of Rule 57Q. In that case, the Reference Application filed by the Revenue against the above order was also rejected as reported in 2000 (36) RLT-910 (CEGAT). As such, in view of the basis adopted by the Commissioner for treating the said Cylinders to be Capital Goods, and by applying the ratio of the earlier decisions to the facts of the instant case, we do not find any merits in the Revenue s appeal. The same is accordingly rejected." 5. In the case of Gnfc Limi....

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....ner or some other storage tank thing. Furthermore, the period in which credit was availed was prior to 23-7-96 viz. when specific definition of Capital Goods was given prior to this the definition of capital goods was the plant or machinery used in the production or processing or to bring about any change in any substance in the manufacture of final product and includes components spare and accessory used in the aforesaid plant and machinery in the instant case Chlorine tonner are neither directly nor indirectly used in the manufacture of final product. Manufacturing will take place even if chlorine is not stored in Chlorine Tonner. Hence, these are not essential, or even part of plant and machinery used in the manufacture of final....