9911796707
TMI Blog1998 (2) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... ssistant Commissioner disallowed credit of Rs. 8,46,702/- taken as capital goods credit on the main ground that the impugned items were used for the manufacture of exempted goods falling under sub-heading 52.02 which was not included in the Annexure to Rule 57Q, until 21-10-1994 and that some of the items were spares for generator and so were not covered by Rule 57Q. I find from the records that in respect of an appeal filed by M/s. Gobald Textiles (P) Ltd., Tirupur, my predecessor has held vide Order-in-Appeal No. 350/96 Dated :(sic) that based on the provisions of Rule 57S, proportionate credit at the rate of 2 % per quarter alone can be disallowed in respect of the capital goods for use upto 21-10-1994 and the balance could be restored. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortionate credit for preparatory machines and their spares which were received prior to 21-10-1994 is not correct. Seeking recourse to the amended provisions of Rule 57S to redefine Capital goods is not proper. The term capital goods is explained under Rule 57Q and not under Rule 57S. D. Notification No. 23/94-C.E. (N.T.), dated 20-5-1994 seeks to make amendments to Rule 57S and does not intend to enlarge the concept of capital goods so as to include the goods used in relation to the manufacture of final product. The term capital goods is well explained/defined under Rule 57Q only and not under Rule 57S as held by the Commissioner (Appeals). Rule 57S deals with the manner of utilisation of credit under Rule 57Q and does not deal with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t eligible for credit, as parts/accessories of generating sets had not been covered as capital goods under Rule 57Q during the material time. Hence the order of the Commissioner (Appeals) is not sustainable in this regard also. H. As regards Carbon tetra chloride, it is used only for cleaning rubber cots of spinning frame. It is not used for producing, processing of any goods or for bringing about any change in any substance for the manufacture of final products. Further it is not covered by any of the categories of explanation to Rule 57Q, defining capital goods. Hence the order of the Commissioner (Appeals) in this regard also, is not sustainable. I. In view of the reasons stated in grounds `A to `H above, it is prayed that the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
