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1998 (11) TMI 253 - AT - Central Excise
Issues:
Whether the credit of duty paid on the "Fork Lift Truck" received by the respondents prior to 16-3-1995 was eligible under Rule 57Q of the Central Excise Rules, 1944. Analysis: The appeal filed by the Revenue questioned the eligibility of Modvat credit on the "Fork Lift Truck" received by the respondents before 16-3-1995. The respondents, engaged in plywood manufacturing, claimed Modvat credit under Rule 57D of the Rules, declaring the truck as a capital good. The Assistant Commissioner disallowed the credit, stating that only from 16-3-1995, the truck became eligible under Rule 57Q. The Commissioner (Appeals) allowed the appeal based on a Tribunal decision, leading to this appeal. The Judge considered the arguments presented by both parties. The Revenue contended that the truck became eligible for credit only post 16-3-1995 and that no retrospective effect could be given to the relevant Notification. However, the Judge noted that even before the amendment, "equipment" was included in the definition of capital goods. The Tribunal's decision emphasized assessing whether the equipment used was integral to the manufacturing process and contributed to production or processing of final products. In this case, the Fork Lift Truck was crucial for handling raw materials, aligning with the manufacturing requirements. The Judge referenced various Tribunal decisions highlighting the necessity to evaluate each case based on the capital goods' relevance in the manufacturing process. Given the bulky nature of materials handled by the respondents, the Fork Lift Trucks were deemed essential for the manufacturing process. Upholding the Commissioner (Appeals)'s decision, the Judge found no reason to intervene, considering the facts and circumstances of the case. In conclusion, after a thorough review of the facts and circumstances, the Judge dismissed the Revenue's appeal, affirming the eligibility of Modvat credit for the Fork Lift Trucks received by the respondents before 16-3-1995.
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