2010 (12) TMI 1109 - HC - Central Excise

Summary

Issues involved: Interpretation of Rule 57Q of the Central Excise Rules, 1944 in relation to the supply of goods during repair work.

Summary:
1. The Respondent, U.P. State Sugar Corporation Limited, placed an order with M/s Jyoti Limited for the repair of main field coils and rotor of an Alternator. The dispute arose regarding the excise duty charged on the repair work done by Jyoti Limited. The Tribunal held that the repair work amounted to the supply of goods, entitling the Respondent to the benefit of Rule 57Q of the Central Excise Rules, 1944.

2. The Appellant contended that the goods repaired did not match any items specified in the schedule to the Central Excise Tariff, thus challenging the applicability of Rule 57Q. It was argued that the description of the goods in the purchase order and bill did not align with the items in the Tariff schedule.

3. The Respondent's counsel referred to item 85.03 of the Tariff schedule, which covers parts suitable for use with machines under specific headings. While acknowledging that excise duty on parts during repair could qualify for Rule 57Q, it was highlighted that the order and bill indicated repair and testing of parts, not just supply of parts. The Court directed the matter to be sent back to the Tribunal for further consideration on whether the repair and testing work could be classified as goods specified in the Tariff schedule. The Tribunal was instructed to address the issue promptly.