9911796707
TMI Blog2001 (5) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... from Sept., 1998 to Feb., 1999 involving Modvat credit of Rs. 1,13,030/- (2) dated 24-06-1999 for the period from Feb., 1999 to May, 1999 involving Modvat credit of Rs. 38,893/- (3) dated 24-11-1999 for the period from July, 1999 to Aug., 1999 involving Modvat credit of Rs. 29,120/- and (4) dated 5-4-2000 for the period from Oct., 1999 to March, 2000 involving Modvat credit of Rs. 66,720/- asking them to show cause as to why the Modvat credit availed by them on Valve for Chlorine Cylinder and Model Spindles for Chlorine Valve should not be recovered on the ground that the said item is not defined/specified under Rule 57Q and that these items can only be used for Chlorine Cylinders/Tonners falling under Ch. 73, and Chlorine Cylinders/Tonner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ves Spindles while the second appeal relates to allowing of recredit or otherwise reversed by the appellants. 2. The appellants have in their two appeals raised a common issue i.e. eligibility of Valve for Chlorine Cylinders for Modvat duty credit under Rule 57Q as capital goods. The appellants in their appeal petition at the outset submitted that valve is admittedly classified and suffered duty under CSH 8481.80 as per invoice copy filed in the appeal petition. Further, these has also been admitted in the SCN s and findings in the O-in-O. Further the valves are specifically covered under Sr. No. 2 of the table appended to Rule 57Q, they are eligible for Modvat credit as capital goods as long as it is used in the factory of production. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Modvat credit. They have relied on the decision of C.C. C.E. Jaipur v. J.K. Synthetics Ltd., Jaipur [1999 (107) E.L.T. 761 (T)] wherein it has been held that whether the benefit is allowable in terms of Rule 57A or 57Q in secondary and if an item is treated as capital goods, it has to be allowed under Rule 57Q and if not it has to be allowed under Rule 57A. But it would not be excluded from the purview of Modvat scheme till essential requirements of the scheme were duly satisfied. They have appealed against the imposition of penalty under Rule 173Q when provisions of Rule 57U(6) alone were invoked in the SCN. The appellants were all along under the bona fide belief that the subject goods were infact capital goods and therefore the impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covering the 4 SCNs, the other appeal relates to one of the SCNs, dated 5-3-1999 against which they had already reversed the credit taken and applied for refund. The second appeal relates to the rejection of this refund because of the decision on the above SCN confirming the demands made in the said SCN. The decision in the case of the first appeal would naturally affect the second appeal. I therefore decide the first appeal first. The classification of the valve under Ch. 8481.80 is not in dispute. I find sufficient merit in the arguments of the appellants that the valves are covered under Sr. No. 2 of the table appended to Rule 57Q(1). Sr. No. 2 of the table barring some exclusions, covers all goods falling under Ch. 84 without prescribi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
