1997 (10) TMI 221

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..... this appeal against the order-in-appeal passed by the Commr. (Appeals), Central Excise, dated 27-2-1997. In the impugned order, the benefit of Modvat credit was denied on pipes and tubes on the ground that they are not covered by the term capital goods 2. Ld. Counsel appearing on behalf of the appellants submits that the appellants are engaged in the manufacture of V.P. Sugar. He further subm .....

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..... ed 2nd Dec., 1996 in respect of availment of Modvat creidt on component parts and accessories under Rule 57Q. He therefore, prays that the matter may be remanded to the adjudicating authority for de novo adjudication the basis of the clarification issued by the Board. 3. Ld. JDR appearing on behalf of the respondent submits that the appellants have taken credit on respect of capital goods before .....

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..... r Rule 57Q of the Central Excise Rules, 1944. The clarification dated 2-12-1996 is reproduced below : CLARIFICATION ON AVAILMENT OF MODVAT CREDIT ON COMPONENTS, SPARES AND ACCESSORIES UNDER RULE 57Q OF CER Circular No. 276/110/96-TRU, dated 2nd December, 1996 Rule 57Q of the Central Excise Rules, 1944 allows credit of duty paid on capital goods used by the manufacturer of specified goods. Ca .....

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..... heir classification or by their description. Clauses (a) to (c) of Explanation (1) of the said rule cover capital goods by their classification whereas clause (d) covers goods by their description viz, components, spares and accessories of the said capital goods. It may be noted that there is a separate entry for components, spares and accessories and no reference has been made about their classif .....

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..... order-in-original. In these circumstances, the impunged order is set aside the matter is remanded to the jurisdictional Asstt. Commr., Central Excise, Moradabad for de novo decision taking into consideration the clarification issued by the Board after affording an opportunity of personal hearing to the appelllants. The respondents are at liberty to take legal as well as factual objection at the t .....

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