9911796707
TMI Blog2004 (6) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue involved in both the appeals is common, therefore he is making common pleadings for both the appeals. However in Appeal No. E/975/2002, he is also taking additional ground of time-bar. He pleaded that the appellants are engaged in manufacturing electrical/electronic metal enclosures, industrial cooling equipment and their parts. The appellants during 1995-96 imported a paint plant falling under Tariff Heading 84.24 of Schedule to Central Excise Tariff Act for manufacturing various products. They had filed relevant declaration under Rule 57T of Central Excise Rules and took credit of the amount paid as additional duties of customs. The factory construction commenced sometime in 1995 and the commercial production commenced in Decem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000 (120) E.L.T. 75 (Kar.). He stated that even though they have taken the credit on the parts, components and spares of paint plant under Rule 57Q, however, this may be taken as inputs under Rule 57A and credit may be allowed to them under Rule 57A in view of the decision of the Larger Bench of the Tribunal in case of Commissioner of Customs C. Excise, Meerut-I v. Modi Rubber Ltd. - 2000 (119) E.L.T. 197 (Tri. - LB) wherein it was held that declaration filed by the assessee in terms of Rule 57Q was sufficient for the purpose of extending credit on inputs within the meaning of Rule 57A. 4. Regarding time-bar in the case of Appeal No. E/975/2002, the learned Counsel pleaded that show cause notice was issued to them under Rule 57U of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g under Chapter Heading 84.24 are excluded from the list of the capital goods used in the factory of manufacturer which are eligible for Modvat credit. He stated that the parts of the paint plant are also excluded when the main plant was excluded. He stated that Rules 57A, 57B and 57Q along with the entire scheme of Modvat credit should be read harmoniously to make it clear that credit under Rule 57A is allowable only on those inputs which are used in or in relation to the manufacture of final products. Parts and components of paint plant cannot be considered as inputs. He relied on the following decisions of - (i) High Court of Gujrat in case of Torrent Laboratories Pvt. Ltd. v. U.O.I. - 1991 (55) E.L.T. 25 (Guj.) wherein it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e capital goods. He stated that these cannot be taken as inputs as they are not used in the manufacture of the final products. He pleaded that only those inputs which are notified under Rule 57A are eligible for Modvat credit as inputs and the decision of the Tribunal in the case of Union Carbide India Ltd. (supra) and other decisions relied upon by the appellants are not applicable on the facts and circumstances of the present case. 6. We have carefully considered the submissions made by both the sides. We find that the appellants are manufacturers of metal enclosures for electrical and electronic items, industrial cooling equipment and their parts. The appellants have claimed that in view of the decision of the Larger Bench of the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 57J (iii) Section AAA - Credit of money in respect of certain raw material used in the manufacture of certain excisable goods. It covered Rule 57K to Rule 57P (iv) Section AAAA - Credit on duty paid on capital goods used by the manufacturer of specific goods. This covered Rule 57Q to Rule 57U. Rule 57Q specified description of capital goods falling within the Schedule of the Central Excise Tariff Act, 1985, for which credit was allowable if these are used for manufacture of final products mentioned in the said Rule. Heading 84.24 of the Schedule of the Central Excise Tariff Act was excluded from the capital goods eligible for Modvat credit. Therefore the parts and accessories of paint plant falling under Heading 84.24 were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces used for producing or processing of goods for bringing about any change in any substance in or in relation to manufacture of final products are eligible for Modvat credit as these are not excluded by the Explanation . We find that Rule 57A(4) allows credit of specified duty on inputs used in manufacture of final products as well as on inputs used in or in relation to manufacture of final products whether directly or indirectly and whether contained in the final products or not. The reading of Rule 57A(4) and Rule 57B(2) together, we find that the machines, machinery, equipment, apparatus, tools, appliances or capital goods as defined in Rule 57Q (other than those used as component parts in the manufacture of final products) are not el ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
