2005 (3) TMI 577 - AT - Central Excise

Summary

Issues: Denial of credit on programmable logic control system under Chapter Heading No. 84.71

Analysis:
The judgment by the Appellate Tribunal CESTAT, Mumbai revolved around the denial of credit on a programmable logic control system under Chapter Heading No. 84.71. The Lower Authorities had rejected the credit, citing its exclusion from the purview of capital goods under the Modvat scheme. They specifically referred to Rule 57Q, which excluded Heading No. 84.71 from the definition of capital goods. The authorities emphasized that since the item in question was a complete system, it did not fall under the category of components, spares, and accessories specified in the table. The Tribunal noted that the express exclusion of the item under Rule 57Q prevented its inclusion under a general category. The judgment highlighted that if the legislature intended to include such items under subsequent provisions, it would have done so explicitly. The Tribunal dismissed the argument that the item could be considered a component and part of machinery under Serial No. 5 of the table, as it would contradict the purpose of the exclusion.

In the analysis, it was emphasized that the Tribunal did not find merit in the appellant's argument that the programmable logic control system should be covered under Serial No. 5 of the table as a component of machinery. The judgment concluded by dismissing the appeal based on the interpretation of Rule 57Q and the specific exclusion of the item in question from the definition of capital goods. The decision underscored the importance of adhering to the explicit provisions of the law and avoiding broad categorizations that could undermine the legislative intent.