2007 (8) TMI 163

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t had wrongly availed Cenvat credit on jointing gasket sheets, asbestos graphite lub packing, steel packing, welding electrodes and plain plates during the period from March 2003 to January 2004. According to the assessee, packing/jointing was used to tighten the joints of the air of the gas in the sugar mill plant for various lines of pipes, besides for jointing purposes in boilers, sulphur furnace etc. For electrodes, it was contended that they were used for repairing various machineries, which was needed due to wear and tear. The electrodes were also used for "hard facing" of various parts of machineries. The adjudicating authority held that, the items in question were not eligible capital goods. It was also held that the welding electro....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....milar view was also taken in Rosa Sugar Works v. CCE, Kanpur reported in 1999 (114) E.L.T. 950 (Tri.-Del.), and in CCE, Noida v. DSM Ltd. reported in 2003 (162) E.L.T. 987 5. The learned authorized representative for the assessee tried to argue that the expression "plain plates" should be treated to be referring to the parts of the machinery used in the factory of the assessee for manufacturing sugar. He submitted that large quantity of plates are used in the moving cranes which are employed during the manufacturing process. Admittedly, however, no such specific use was pointed out from any material on record. The word "plate" in general would mean, in the context, sheet or metal etc. which has even surface and uniform thickness often as....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f manufacture from one equipment to another, were components and/or accessories of plant and machinery installed at the factory and they qualified for Modvat credit as capital goods. As held in Dwarikiesh Sugar Industries v. CCE, Meerut decided on 16-8-2007 [2007 (220) E.L.T. 938 (Tri)] that the asbestos gaskets are used in boilers, sulphur furnace, quads, pans and pumps, they can be considered as parts of the machinery. Even after the omission of the word "plant" in the definition of capital goods in the subsequent rules, the Cenvat credit would be admissible in respect of such asbestos, gaskets without which the machinery cannot function. Therefore, Cenvat credit has been wrongly denied in respect of jointing gasket sheets, asbestos graph....