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TMI Blog2005 (9) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... vail Modvat credit irrespective of the individual classification of UV lamps/bulbs, and set spring sprue bush, which according to the appellant were being used as parts of the capital goods eligible for credit under Rule 57Q. 2. In Appeal No. E/594/2004 the matter relates to proceedings, which were initiated against the respondents, who were engaged in manufacture of audio cassettes, video cassettes and compact discs falling under Chapters 85.23 and 85.24 of the Central Excise Tariff Act. By show cause notice dated 1-7-99, it was alleged that the respondents contravened provisions of Rule 57Q of the Rules, by wrongly availing Modvat credit amounting to Rs. 12,104.30 p. in respect of UV Lamps and set spring sprue bushes. According to the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... UV bulbs was disallowed and its recovery ordered with interest and penalty of Rs. 15,000/- under Rule 173Q of the Rules. 4. The Commissioner (Appeals) noted the contention of the present respondents that the credit on UV lamp and UV bulb was not claimed as capital goods but as component part of the capital goods, namely, printing machine, which was falling under sub-heading 84.43, and which was covered as specified capital goods at item No. 2 of the Table under Rule 57Q(1) and that set spring sprue bush were also a component part of the capital goods installed in the factory and held that in view of Board s Circular dated 2-12-96, Modvat credit was admissible in respect of these items. Both the appeals were, therefore, allowed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and accessories of the capital goods and not the capital goods themselves. Therefore, since the UV bulbs and set spring sprue bushes were used as parts or components, Modvat credit was admissible. 7. Rule 57Q(1) of the said rules, as it existed at the relevant time, provided that the provisions of Rule 57Q shall apply to goods described in column (3) of the Table given thereunder and to the goods described in the corresponding entry in column (2), thereof, used in the factory of the manufacture of final products. 7.1 Set spring sprue bush is an item falling under Heading 73.26 of the Tariff Act which relates to Other articles of iron or steel in the residuary entry 7326.90. 7.2 Chapter 85 relates to Electrical/Electronics ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y would become eligible for Modvat credit, if they are used in any other capital goods which fall in the list of capital goods included in Sr. Nos. 1 to 4 of the Table below Rule 57Q. In other words, even if ultraviolet bulbs are excluded in items at Sr. No. 3 by virtue of exclusion of Heading 85.39 and, therefore, they can not be treated as capital goods and no Modvat credit can be claimed in respect thereof under Sr. No. 3 of the Table, they would become eligible for Modvat credit if they are used in other capital goods which fall under any of the items at Sr. Nos. 1 to 4 of the Table. Even as regards set spring sprue bush, the question was not whether this item was specified at Sr. Nos. 1 to 4 but the real question was whether it was use ..... X X X X Extracts X X X X X X X X Extracts X X X X
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