C.C.E., Chandigarh Vs. M/S. Vardhman Spg. and General Mills

1. the revenue has filed two appeals out of single order in appeal no.1709 dated 30.9.99. the period in dispute is october 94, december 94 and amount in dispute is rs. 98,238/-. since there is only one order in appeal and only one order in review relating to the above period, ld.counsel for the respondent is correct in his submission that one appeal alone is necessary. therefore, appeal no. e/133 of 2000 is not required and dismissed as duplication. i shall proceed to dispose of appeal no.e 86/2000-nb.2. commissioner has extended modvat credit on items such as electric panel, weighing scales etc. on the ground that they are capital goods, eligible for modvat credit under rule 57q of the central excise rules.function and use of items as set out by the lower appellate authority and not contested by the revenue in its appeal (sic)memorandum is shown below:-1. electric panel it is used in the production department in order to provide2. weighing scales it help processing department and parts thereof. to manufacture goods and very much used in relation to3. processing materials are carried in the trolly processing trolly from one machine to the other. these4.fibre glass it is used in humidification plant. this plant is essential maintained in processing block of spinning mill. fibre glass is5. gauge it is essential spare required in spinning mill. it is being6. heater it is an apparatus which is used for conditioning of yarn. hence, eligible to be covered under 3. it has been held that in a series of decisions of the tribunal including decision of the larger bench in the case of jawahar mills vs cce coimbatore 1999(109) elt 47 that items of the above kind are capital goods covered by rule 57q, hence eligible to modvat credit.following ratio of the above cited decision, i hold that there is no infirmity in the impugned order and accordingly uphold the same and reject the appeal.