2005 (7) TMI 500 - AT - Central Excise

Summary

Issues: Rectification of mistake regarding disallowance of Modvat credit on Cores System with Monitor.

In this case, the Appellate Tribunal CESTAT, Bangalore addressed the issue of rectification of mistake in Final Order Nos. 1884-1885/2004 concerning the disallowance of Modvat credit on Cores System with Monitor. The Tribunal had initially disallowed the credit based on the goods falling under Chapter No. 8471.00 not being entitled for Modvat credit under Rule 57Q of the Central Excise Rules, 1944. The Commissioner (Appeals) had also ruled against the appellants, stating that the item was not used for processing goods or bringing about any change in substance for manufacturing final products. The appellants contended that the system was integral to the cement plant's operation, as it monitored various processes to ensure compliance with technical parameters. The Tribunal acknowledged an error in its final order, noting that the appellants had indeed substantiated their case. The Revenue representative agreed that the item could be considered an integral part of the cement plant. The Tribunal, after careful consideration, found an apparent error in its order and allowed the rectification. It substituted the earlier decision with references to Rule 57G, citing precedents where control panels and monitors were deemed eligible for credit during the relevant period. The Tribunal allowed the Modvat credit on Cores System with Monitor based on these findings.