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TMI Blog2005 (8) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... 996. (2) Cables (Heading 85.44) received on 20-7-1996. (3) Switch board and control panel (Heading 85.37) received on 29-7-1996. Ld. Commissioner (Appeals) disallowed to the assessee the credits taken on the above items. Hence the assessee's Appeal No. E/272/2004. (4) Feeder Table Structure, received prior to 23-7-1996. (5) Cables - some of them received prior to 23-7-1996 and the rest received after 23-7-1996. (6) Spares for bagging machine, received after 1-9-1996. Ld. Commissioner (Appeals) disallowed the credits taken on items 4 to 6, to the assessee in a separate order. Hence the assessee's Appeal No. E/273/2004. 2. After examining the records and hearing both sides, I find that the starter motor w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve-Member Larger Bench of the Tribunal held that such wires and cables could be considered to be components, spare parts or accessories of plant and would qualify for Modvat credit in terms of Clause (b) of Explanation (1) ibid. In any case, the cables received by the assessee on 20-7-1996 were covered by the definition of 'capital goods' and hence eligible for Modvat credit. Switch board and control panel were received by the appellants on 29-7-1996, that is, after 23-7-1996. On the date of the receipt of these items, the above Clauses (a) & (b) were not in existence upon amendment of the Rule by Notification No. 14/96 ibid. On that date, the eligibility of capital goods for Modvat credit under Rule 57Q depended, by and large, on their Tar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 14/96 ibid.) inasmuch as all goods falling under Heading 85.44 - the cables were falling under this Heading - were covered by the definition of capital goods. Coming to the spares for bagging machine, I find that these items were received in the appellant's factory in December 1995 and not after 1-9-1996 as noted by the Commissioner (Appeals). This position is clear from Annexure to the relevant show cause notice. As the above goods were received prior to 23-7-1996, it has to be ascertained as to whether these were covered by Clause (a) or Clause (b) of Explanation (1) to Rule 57Q(1). The bagging machine was used for packing gunny bags. The bagging machine is said to be a packing machine for sugar. Packing of final product is a part of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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