1999 (10) TMI 699

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..... The short question involved in the present appeal is as to whether the appellants are entitled to the Modvat credit of duty in respect of KSB make pump and Galvanised Iron Pipes used for operating boiler. Shri B.N. Chattopadhyay, learned Consultant for the appellants submits that the pumps and pipes have been held to be capital goods in terms of Rule 57Q by the various Tribunal s decisions. He .....

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..... s such, prior to introduction of the Notification No. 25/96, the Modvat credit on the tubes and pipes cannot be extended. 3. In his rejoinder, Shri B.N. Chattopadhyay, learned Consultant submits that the Notification No. 14/96 has been held to be a clarificatory Notification having retrospective effect in terms of Tribunal s decisions in the case of Associated Cement Co. Ltd. v. Commissioner o .....

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..... irectly qualify for Modvat as capital goods. Nevertheless, he submits that the Modvat on the same is available under the provisions of Rule 57A and though they have filed a declaration under Rule 57Q, there are Tribunal s judgments which say that alternative claim under Rule 57A should be considered and not be rejected on the ground that initial credit as claimed under Rule 57Q. For this propositi .....

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..... e pipes which were specifically introduced with effect from 31-1-1996, is not sustainable in view of the earlier judgment of the Tribunal holding that the Notification No. 14/96 (to which Notification No. 25/96 is the amending Notification) is clarificatory and has retrospective effect. Even prior to such amendment, pumps and pipes were covered by the main definition clause of Rule 57Q. As such, I .....

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..... t is also seen that the said Thrm Spl. is also not excluded from the list of inputs specified in the Notification issued under Rule 57A being classified under sub-heading 2710.90. The same is also not hit by the Exclusion Clause of Rule 57A. As such, I hold that the said Thrm Spl. is an eligible input in terms of Rule 57A. The Modvat credit is available in respect of the same under the said Ru .....

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