2003 (12) TMI 515 - AT - Central Excise

Summary

Issues: Classification of goods for duty credit under Rule 57Q.

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue revolved around the classification of goods, specifically Thermocouple Tips, for the purpose of claiming duty credit under Rule 57Q. The Appellant contended that the goods were not covered under Serial No. 4 in the Table annexed to Rule 57Q and thus should not be allowed credit as capital goods. On the other hand, the Respondent argued that the goods should be eligible for credit based on a previous Tribunal order and the interpretation of the relevant rules.

The Tribunal analyzed the arguments presented by both sides. The learned S.D.R. representing the Appellant asserted that Thermocouple Tips, classified under Heading No. 90.33, were not listed under Serial No. 4 in the Table under Rule 57Q. Conversely, the Respondent's consultant referred to a previous Tribunal order allowing credit on similar goods in the Appellant's case for different periods. However, the Tribunal noted that the copy of the order provided was handwritten and difficult to read, emphasizing the importance of submitting typed certified copies for clarity. Additionally, it highlighted that the credit in the previous case was allowed under a different rule, Rule 57A, not Rule 57Q.

Upon examining the relevant entry in the Table annexed to Rule 57Q, the Tribunal acknowledged the absence of Heading No. 90.33 under Serial No. 4. Nonetheless, it noted that the lower authorities had granted credit on Thermocouple Tips under Serial No. 5, covering components, spares, and accessories of goods specified under Serial Nos. 1 to 4. The Tribunal found that since industrial furnaces, listed under Serial No. 3, included Thermocouple Tips as components, the credit was rightfully allowed under Serial No. 5. Thus, despite the omission of Heading No. 90.33 under Serial No. 4, the Tribunal upheld the decision to grant credit under Rule 57Q, rejecting the department's appeal.

In conclusion, the judgment clarified the classification of goods for duty credit under Rule 57Q, emphasizing the importance of accurate documentation and adherence to the specified rules and entries in the Table. The decision underscored the need for clarity in presenting case law references and upheld the lower authorities' interpretation allowing credit on Thermocouple Tips under the relevant serial number.