2005 (8) TMI 557 - AT - Central Excise

Summary

Issues:
1. Eligibility of capital goods credit under Rule 57Q for specific items received by the appellants.
2. Disallowance of credits by the Ld. Commissioner (Appeals) for certain items.

Analysis:

1. Starter Motor, Cables, Switch Board, and Control Panel:
- The starter motor used for the I.D. fan, cables for power transmission, and switch board/control panel were received by the appellants within specific dates. The Tribunal held that these items qualified as capital goods under Rule 57Q for Modvat credit based on their usage for manufacturing the final product. The Tribunal cited precedents like Jawahar Mills Ltd. case and CCE v. Surya Roshni Ltd. to support the eligibility of these items for credit.

2. Feeder Table Structure, Cables, and Spares for Bagging Machine:
- The feeder table structure, cables, and spares for the bagging machine were received by the appellants before or after a particular date. The Tribunal found that the feeder table structure supported material handling equipment necessary for production, making it eligible for capital goods credit. Cables received before and after the specified date were deemed eligible based on the amended Rule. The spares for the bagging machine, received before the cut-off date, were considered essential for the manufacturing process, thus qualifying for capital goods credit.

3. Decision and Conclusion:
- The Tribunal allowed the appeals filed by the appellants concerning the eligibility of capital goods credit for the mentioned items. The judgments were based on the interpretation of Rule 57Q, the specific usage of the items in the manufacturing process, and relevant legal precedents. The Tribunal's detailed analysis upheld the appellants' claims for Modvat credit on the disputed items, providing a comprehensive explanation for each decision.