2003 (6) TMI 138

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....peal against the order in appeal whereby the penalty on Modvat credit was allowed on capital goods. 2.Heard both sides. 3.The Commissioner (Appeals) allowed the benefit of Modvat credit in respect of the capital goods purchase through job worker/contractor. 4.The contention of the Revenue is that the appellants are not entitled for the benefit of credit in respect of these items as these are in....

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....bsp;     UPS 5.         Ion Exchanger. 7.The contention of the Revenue is that the goods are not capital goods as the steel structure cannot be construed to be component part of machine or machinery. The paints are not capital goods. The White lead is a chemical, therefore, is not covered under the definition of capital goods. In respec....

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....rwise, the benefit of Modvat credit is not available. 10.We find that Ion Exchanger is used in de-mineralisation plant for de-mineralization of boiler feed water. The Ion Exchanger is the part of plant, therefore, is entitled for the benefit of Modvat credit. The appeal of the Revenue in this respect is dismissed. 11.In respect of the benefit of Modvat credit as capital goods in respect of steel....