Per G.R. Sharma :

This is an appeal against the disallowance of modvat credit on joints, channels, angles, rolled and S.S. welded tubes, M.S. angles and plates, H.R. plates and shape and sections, chequered plates and ITR plates.

2. The facts of the case are that the appellants manufacture sugar. They have been availing modvat credit on a number of items as capital goods. The Revenue alleged that modvat credit was not available on certain items as they were not used in the manufacture or processing or bringing about any change in the final products and, therefore modvat credit has wrongly been taken on the above items. In reply to the SCN, the appellants submitted that the joints, channels, angles and M.S. Beams are used in fabricating supporting structures for installation of equipments such as vaccumpan, crystallizers, sugar grader, elevator, at required heights;that H.R. plates are black steel sheets which are used at the place where the temperature remains substantially high; that these items are used in boiler of sugar plant; that the M. S. bars, shapes and sections are used for erection of new cooling tower; that the chequered plates and ITR plates are used to construct th