2003 (9) TMI 672 - AT - Central Excise

Summary

Issues:
Entitlement to Modvat credit on capital goods 'Cold Core Box' (Patterns).

Analysis:
The appeal before the Appellate Tribunal CESTAT, BANGALORE revolved around the question of whether the party is entitled to Modvat credit on capital goods, specifically the 'Cold Core Box' (Patterns). The Department contended that the party had neither reversed the Modvat credit nor paid the required duty under Rule 57S(1)(ii) of the Central Excise Rules, 1944. The party argued that since the goods were neither sold nor cleared and remained in their possession, there was no obligation to pay duty. The Counsel highlighted the definition of "sale" and "purchase" as any transfer of possession of goods for consideration. The party asserted their right to Modvat credit as they retained possession of the item.

During the hearing, the Tribunal considered the facts and the definition of "sale" and "purchase" as per Section 2(h) of the Central Excise Act. Given that the item in question, the 'Cold Core Box,' remained in the party's possession, the Tribunal found no justification to deny the Modvat credit. Consequently, the Tribunal dismissed the appeal, ruling in favor of the party's entitlement to the Modvat credit on the capital goods.