2000 (10) TMI 145 - AT - Central Excise

Summary

Issues involved:
The issues in this case involve the eligibility of various items for Modvat credit, specifically in relation to capital goods under Rule 57Q of the Central Excise Rules.

Impugned Order:
The four appeals before the Appellate Tribunal CEGAT, New Delhi arise from a common Order-in-Appeal. Two appeals by the Revenue question the treatment of capital goods by the Commissioner, while the other two appeals challenge the disallowance of Modvat credit for certain goods.

Bushers for Transmission of Electricity:
The Tribunal held that bushers used for transmission of electricity are capital goods entitled to Modvat credit under Rule 57Q, as per the decision in Jawahar Mills Ltd. v. CCE, Coimbatore.

Slipring Motors and TEFC Motors:
The Commissioner's decision to allow Modvat credit for Slipring Motors was upheld based on the precedent set in Maihar Cement v. CCE, Raipur, supporting the treatment of these items as capital goods under Rule 57Q.

Transformer Oil as Coolant:
The Tribunal supported the Commissioner's decision to allow Modvat credit for Transformer Oil used as a coolant, drawing parallels to lubricants which are considered capital goods for claiming Modvat credit.

Electric Wires, Cables, and A.C. Coils:
The Tribunal affirmed the Commissioner's decision regarding Modvat credit for electric wires, cables, and A.C. Coils, stating that these items are covered under the Larger Bench decision in Jawahar Mills Ltd.

Capacitors, Relay, and Data Processing Machines:
The Tribunal upheld the Commissioner's decision to allow Modvat credit for Capacitors, Relay, and other electrical spares, as these items are considered to fall within the purview of Rule 57Q.

Explosives and Other Equipment:
The Tribunal disallowed Modvat credit for Explosives, aligning with the decision in CCE, Meerut v. Modi Rubber Ltd. & Ors. The Commissioner's order was modified accordingly.

Material Handling Equipment, Refractories, and Welding Equipment:
The Tribunal supported Modvat credit claims for Material Handling Equipment, Refractories, Electrodes, and Caliberation Gas Mixture, based on previous decisions establishing these items as falling under Rule 57Q.

Compressor, Solenoid Valves, and Laboratory Equipment:
The Tribunal deemed Compressor, Solenoid Valves, and Laboratory Equipment as eligible for Modvat credit under Rule 57Q, in line with relevant precedents.

Pollution Control Equipment and Miscellaneous Items:
The Tribunal confirmed Modvat credit eligibility for Rotary Spares, M.S. Bolts, Hose Assembly, Pressure Transmitter, Rotary Gear Pump, and Rotor and Cover, under Rule 57Q.

Remand for Re-Adjudication:
The Tribunal remitted the entire issue back to the adjudicating authority for re-adjudication in light of the observations made, directing fresh orders to be passed within three months.

This summary provides a detailed overview of the judgment, highlighting the key decisions and reasoning behind the Appellate Tribunal's rulings on Modvat credit eligibility for various items under Rule 57Q of the Central Excise Rules.