1997 (8) TMI 152 - AT - Central Excise

Summary

Issues: Disallowance of Modvat credit as capital goods on specific items

In the present case, the appellants filed an appeal before the Appellate Tribunal challenging the disallowance of Modvat credit as capital goods on items like Malic Resins, Electric wire and cables, Hubs and Blades, Switch gear, and HRC Fuses. The appellants argued that these items should be considered as parts, equipment, and apparatus covered under the definition of capital goods under Rule 57Q. The Tribunal proceeded to hear the appeal and decided it without the requirement of pre-deposit based on the submissions of both parties.

The appellants contended that Malic Resins, used for coating pipes, tubes, vessels, and machines, should be considered capital goods. However, they could not provide a specific Tribunal decision supporting this claim. Regarding electric wires and cables, the appellants relied on a previous Tribunal decision that classified them as capital goods for Modvat credit purposes. The appellants argued that Hubs and Blades, classified under Chapter Heading 8414.00 as machinery parts, should also be eligible for Modvat credit as they fall under the definition of capital goods under Rule 57Q.

The Tribunal considered the arguments and case laws presented by both parties. It found that except for Malic Resins, the items in question were identifiable as parts, equipment, or apparatus of machinery and plant. The Tribunal agreed with the appellants' counsel that these items, including electric wires and cables, Hubs and Blades, Switch gear, and HRC Fuses, met the criteria for being considered capital goods under Rule 57Q. Therefore, the Tribunal allowed the appeal for all items except Malic Resins, which did not have sufficient supporting evidence. The stay application was also disposed of accordingly.

In conclusion, the Tribunal ruled in favor of the appellants, allowing Modvat credit as capital goods for items like electric wires and cables, Hubs and Blades, Switch gear, and HRC Fuses, based on their classification as parts of machinery and plant under Rule 57Q.