9911796707
TMI Blog2002 (11) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the Assistant Commissioner of Central Excise, Central Excise Division, Erode. The brief facts of the case are that the appellants are manufacturers of cotton flax blended yarn and cellulose spun yarn etc. classified under 5203.00 and 5505.00 respectively of CETA, 1985. They took Modvat credit of Rs. 3,74,893/- on capital goods during the period after 1-4-94 and before 21-10-94. The Assis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age of cotton carded/combed. They had been used exclusively for the manufacture of cotton yarn on which duty is payable. Therefore, their action of taking of Modvat credit in respect of draw frame and ring frame are absolutely correct. In the circumstances when the goods are not marketed the same should not be held to be excisable. The lower authority while deciding the marketability, has not pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances of the case and the submissions made in the grounds of appeal and during the personal hearing Modvat credit on capital goods was introduced w.e.f. 1-3-1994 under Rule 57Q to 57U of Central Excise Rules, 1944. My predecessor vide his OIA No. 113/96 (CBE) dated 15-2-96 and 492/96(CBE), dated 16-12-96 has allowed the appeal and directed that proportionate credit for use up to 21-10-94 at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f cotton (carded or combed), which is exempted as intermediate product. So if it is proved that speed frame and draw frame are utilized after the process of cotton (corded or combed) they are eligible for Modvat credit. The ring frame is used beyond the stage of carding and combing of cotton, namely at the stage of conversion of drawing silver to rowing. The ring frame comes into function after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t taken on draw frame, ring frame and the components for the ring frame are correct. Regarding the credit taken on sapcostat oil, the lower authority has already condoned the delay with reference to the declaration under Rule 57T(1) and also observed that these goods are eligible for Modvat credit. So, the credit on them is allowed. 4. In view of the above discussion, the order passed by the lo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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