1996 (4) TMI 303 - AT - Central Excise

Summary

Issues involved: Appeals regarding Modvat credit on various items under Central Excise Rules.

Appeal No. E/1573/95-NB:
The dispute revolves around Modvat credit for capital goods - Foundry Flexes, Electric wire and cables, and welding electrodes. The Assistant Collector denied the credit, stating these items are not covered under the definition of capital goods. However, the Collector (appeals) found Electric Wires and cables to be capital goods under Rule 57Q. The wider definition of capital goods includes components and accessories used for producing goods, leading to the conclusion that wires and cables qualify as capital goods. Hence, the department's contention was dismissed, and the Collector's view was upheld.

Appeal No. E/1574/95-NB:
The issue concerns Modvat credit denial on E.O.T. cranes, with the Revenue arguing these cranes do not qualify as capital goods. The Collector (appeals) disagreed, considering E.O.T. cranes as machines used for processing goods, falling within the capital goods definition. The Departmental Representative cited a previous Tribunal decision but failed to convince. The E.O.T. crane, facilitating raw material movement, was deemed a capital good under Rule 57Q, supporting the Collector's decision.

Appeal No. E/1576/95-NB:
Modvat credit disallowance was based on Central Excise Law and a specific Notification, preventing credit on goods issued on 1-4-1994. The party availed credit on Hot Briquetted Iron on gate passes dated 1-4-1994. The Collector (appeals) accepted the party's plea, considering the duty payment and gate pass issuance timeline. Citing a relevant Tribunal case, the Collector emphasized the importance of examining invoices for Modvat credit. The matter was remanded for further examination by the Assistant Commissioner to ensure duty payment verification before passing a final order.

In conclusion, all three appeals were decided based on the specific issues and interpretations of the Central Excise Rules, resulting in the resolution of Modvat credit disputes for the respective items involved.