9911796707
TMI Blog1997 (5) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... f Central Excise Rules, 1944 :- (i) Insert Air Filter; (ii) Industrial Switch; (iii) Spare Neoprene Rubber; (iv) Spares for Process Control; (v) Temperature Censors; (vi) Cartridge Filter; (vii) Industrial Filter; (viii) Poroplate Air Quench Panel; (ix) Industrial Filter Elements; (x) Grinding Stone Set; (xi) Glue Cartridge; (xii) Libra Accessories (weighing scale). 3. The Commissioner (Appeals) allowed the party's appeal partly by allowing Modvat credit on all the above mentioned items except on Temperature Censors, Industrial Filter elements (components of D.G. set and libra Accessories (weighing scale) observing as under :- "As regards credit under Rule 57Q on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p;The other class of capital goods are those which have been specified under the explanation and are admissible to credit if they have been brought and used in the factory of manufacturer for their respective use. Such capital goods have been described under explanation Clauses (1)(c), (1)(d) and 1(e) of Rule 57Q subject to the provisions and restrictions thereunder. 6. Since the period involved in the instant case is prior to 16-3-1993 therefore, the eligibility for allowing Modvat credit on the goods in question has to be decided in accordance with the Clauses (1)(a), (1)(b) and (1)(c) of explanation to Rule 57Q only. There are following items with their uses in the factory of manufacturer on which Modvat credit has been allowed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... twisting machines and not for manufacturing of the final products as required under Explanation 1(a) of Rule 57Q as such these are also not eligible for allowing Modvat credit. 8. Furthermore, all the above items are neither machines, machineries, equipments, etc. being used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product as specified under Clause (1)(a) of explanation to Rule 57Q nor these are components, accessories or spare parts of such machines, machineries etc. as specified under Clause (1)(b) of explanation to Rule 57Q and also these are not covered by the goods specified under Clause (1)(c) of explanation to Rule 57Q, therefore, these are not eligi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e matter in depth and merely allowed the appeal solely on the ground that at the A.C. level the submissions were not contradicted. This was not sufficient. The ld. Collector was required to examine the position w.r.t. each item and the relevant provisions of law. This was necessary because 57Q is applicable to finished excisable goods of the description specified in the annexure for the purpose of allowing credit only if such capital goods have been permitted to be cleared under Rule 57-S, subject to the provisions of this section and the conditions and restrictions as the Central Government may specify in this behalf; And furthermore, for the purpose of this section capital goods means the items of the type described under Rule 57Q under a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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