9911796707
TMI Blog2002 (8) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... t was in respect of duty payment on spare parts, which were used in the reconditioning of the said machine by M/s Mysore Kirloskar Ltd. (sic) the spares and hence credit taken is irregular. The notices also contended that the spares did not come within the ambit of Rule 57Q of CER, 1944. Para-2 in both the show cause notices is identical. The same is reproduced below : Whereas it appears that M/s. MICO Ltd., Adugodi, Bangalore have received the reconditioned machine and not the spares as such. As per Rule 57Q/57T, of C. Excise Rules, 1944, spares of the machines received by the manufacturers are eligible capital goods for taking credit. Whereas in the instant case M/s. Motor Industries Co. Ltd., Bangalore have not received the spares and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and ordered refund of Rs. 2,51,130/- in RG 23C Part II. 4. The Commissioner (A), agreeing with the order of the Asst. Commissioner, dismissed the appellants appeal, holding, proviso to Rule 57T(3) does not apply to the facts of this case and hence credit is not available under Rule 57Q of CER, 1944. Aggrieved against the order of Commissioner (A). Aggrieved against this order, the appellants preferred an appeal before the CCE (A) Bangalore. 5. We have heard both sides and considered the submissions and find : (a) It is settled law that capital goods Modvat credit is eligible on the duty paid on parts, when such parts are used in the capital goods. They do not stipulate such use for maintenance, repairs etc., only in the factory o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) Aditya Cement Ltd. as per Final Order No. A 369/2002, dt. 6-3-2002 in appeal No. E/2278/2001-NB(D) (ii) CCE, Mumbai v. NRC Ltd. and Others [2001 (135) E.L.T. 1012 (T) = 2001 (46) RLT 609] (iii) Gujarat Ambuja Cement Ltd. v. CCE - 2001 (130) E.L.T. 129 (T) We have followed these decisions, in our order No. 898/2002, dt. 10-7-2002. Therefore we do not find any reason to deny the Modvat credit on spares, which are used in the machinery which is there-after used as capital goods, even when such spares have been installed in the machinery on refurbishing it on a site, outside the factory. (c) We find that Rule 57Q of the Central Excise Rules which reads as follows : 57Q. Applicability - (1) The provisions of this section ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
