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TMI Blog1998 (11) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... it under Capital goods scheme for Diesel Generating sets and Comber for cotton yarn. 4. Ld. JDR submits on Revenue s Appeal No. E/1777/96 against Order-in-Appeal No. 630/96-C.E. (CBE), dated 23-9-1996 passed by Commissioner (Appeals) as follows :- (a) both Diesel Generating set and Comber have been used for manufacture of cotton carded/combed, which is an intermediate product chargeable to NIL duty. (b) The impugned order that credit on comber be allowed after 21-10-1994 after excluding 2.5% of duty per each quarter of use up to 21-10-1994 is incorrect and not legal as Rule 57S does not extend credit. (c) He cites case of M/s Velathal Spinning Mills (P) Ltd. (Final Order No. 646/96 dated 16-4-1996) that Rule 57S cannot override the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no distinct product emerges. Such sliver is not marketable and not goods . (b) with respect to Notification No. 60/94-C.E., dated 21-10-1994, the date of receipt of machines (CG) is not material. Only the date of taking credit is material. There is no provision in Rule 57Q which, at that relevant time said that credit is to be taken within specified time of receipt of goods. Thus, as long as credit is taken after 21-10-1994, the said notification is satisfied. In their case credit was taken on 3-11-1994. (c) Ld. Consultant cited the case of Hematic Motors as reported in 1997 (91) E.L.T. 592 (Tribunal) wherein it was held that all Rules under Modvat scheme are to be read together and not in a disjointed manner. Thus Rule 57S and Rule 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, I find that the question of Diesel Generating set is a non-issue in this appeal and no orders are required thereon. 12. As far as the comber for combed/coded cotton is concerned, I find that as against the single member decisions submitted by ld. JDR and the other case laws cited (on similar principles of law) by ld. Consultant, this very issue has been already considered by a two member Bench of this very Tribunal in the case of C.C.E. v. Singaravelar Spinning Mills (P) Ltd. and as reported in 1998 (79) ECR 659 (Tribunal) = 1998 (28) RLT 872 (CEGAT) . The issues considered therein were as follows :- (a) Whether cotton combed carded sliver is goods , being a new item which is marketable? and (b) Whether Notification No. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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