Wockhardt Ltd. Vs. Commissioner of Cus. and C. Ex.

1. there are two items in dispute in the present appeal against the order of the commissioner (appeals) disallowing modvat credit: (1) distilled water storage tank (ss vessel) and (2) laminated air flow unit.2. the appellants have asked for a decision on the basis of the written submission. hence, i heard the learned sdr and perused the records.3. the appellants explained that since they are manufacturing i.v.fluids the basic raw material for which is distilled water which is required to be kept at a temperature of 80c only till it is sent for batch manufacturing and the tanks are specially designed to maintain such temperature. they also rely upon the decisions of the tribunal in the case of dabur india limited reported in 1998 (98) e.l.t. 674 and other decisions to support their claim of eligibility of this item to capital goods credit under rule 57q.4. the next item, namely, laminated air flow unit, ensures that the testing area of i.v. fluids is free of pollutants, sterile and all the batches manufactured in the fluid department are subject to testing at the desired environment. the claim to credit on this item is supported by the decision in the case of aarati steels reported in 2002 (148) e.l.t. 972 and others.5. on going through the undisputed use of these items and the case law cited in the written submissions, noting that no contrary decisions has been cited before me, following the ratio of the case law cited, i hold that both items in dispute are capital goods eligible to modvat credit, set aside the impugned order and allow the appeal.