2003 (5) TMI 184 - AT - Central Excise

Summary

Issues involved:
The appeal involves the eligibility of Modvat credit for Welding Electrodes, Copper Winding Wire, and MS Sheets, Angles, Joints, Shapes, and Sections, for the period September 1997 to March 1998.

Welding Electrodes:
The Commissioner of Central Excise (Appeals) allowed Modvat credit for Welding Electrodes based on previous decisions. However, the appellant argued that Welding Electrodes were not eligible for Modvat credit under Rule 57Q. The Tribunal found that goods under Heading No. 83.11, including Welding Electrodes, were not specified as capital goods for Modvat credit during the relevant period. The Tribunal also noted that previous decisions did not address the admissibility of capital goods credit for Welding Electrodes.

Copper Winding Wire:
The Commissioner held that Copper Winding Wire qualified as capital goods for Modvat credit under Rule 57Q, despite the original authority's finding that it was not an eligible input. The Tribunal determined that the benefit of Modvat credit under Rule 57Q could not be extended to Copper Winding Wire as the respondents had never claimed capital goods credit for it.

MS Sheets, Angles, Joints, Shapes, and Sections:
The original authority found that these items were not eligible for Modvat credit under Rule 57Q as they were used for general purposes like fabrication of steel structures and erection of sheds. The Commissioner allowed Modvat credit based on a previous decision, but the Tribunal upheld the original authority's finding, stating that the items were not components of machinery and therefore not eligible for Modvat credit under Rule 57Q.

The Tribunal set aside the Commissioner's order and restored the original authority's decision, disallowing Modvat credit for the mentioned goods.