9911796707
TMI Blog1996 (11) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... lanation (a) to (c) of Rule 57Q of Central Excise Rules, 1944 or which are contrary to the spirit of the Modvat Rules framed under Notification 4/94, dated 1-3-1994. 2. The facts involved in the matter, as considered in the Tribunal s order which has given rise to the present Reference Application are narrated below. 3. The respondents are manufacturers of photo-copiers and had taken Modvat credit in respect of Chilled Water Coil and Weighing Machine under Rule 57Q of Central Excise Rules, 1944. This was disallowed by the Assistant Collector of Central Excise, Rampur vide his Order-in-Original dated 6-1-1995 on the ground that these were not capital goods under Rule 57Q. This order was set aside by the Commissioner of Central Excise (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal s decision is correct in law as the items in question merit consideration as goods used in the manufacture of final products : (i) Tata Iron Steel Company v. Union of India - 1988 (33) E.L.T. 217 (Patna). (ii) CCE v. Rajasthan State Chemical Works - 1991 (55) E.L.T. 444 (S.C.). (iii) Avery India Limited v. Commercial Tax Officer - 1983 Vol. 52 Sales Tax Cases 297.\ He concluded his argument with the plea that the Reference Application be dismissed as no question of law has arisen out of the Tribunal s order. 6. I have considered the submissions and perused the record. Rule 57Q of Central Excise Rules under which the respondents had taken the disputed credit provides for allowing of credit of specified duty paid on capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocess as ring frames or looms and they are certainly machinery used in the manufacture of cloth. In coming to this finding, the High Court applied the test that every item of machinery which has a use in the manufacture of finished goods and without which manufacture of finished goods would not be possible would be machinery used in the manufacture of finished goods. Such machinery would be an essential and integral part of the plant which manufactures finished goods and would satisfy the description that it is machinery used in the manufacture of finished goods. This decision will squarely apply to the present case as has been held in the order of the Tribunal. 8. The other item in question is weighing machine used for weighing the raw m ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
