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TMI Blog2005 (6) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 58,120/-. Appeal No. 14/2004 is against denial of this credit to them by the lower authorities. In January 1998, also, the party availed similar credits, amounting to Rs. 4,52,415.30 and Rs. 1,07,160/-. Appeal Nos. 15/2004 and 13/2004 respectively are against denial of these credits by the lower authorities. 2. Heard both sides. Ld. Counsel for the appellants submits that the plates used in the fabrication of storage tanks were covered by clause (d) of Explanation (1) to Rule 57Q(1) as the rule stood during the period October, 1995 to March, 1996 and thereafter. It is submitted that, as generation of molasses as a by-product is inevitably incidental to the manufacture of sugar, its storage should be treated as part of the process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner v. Jawahar Mills Ltd., 2001 (132) E.L.T. 3 (S.C.). Finally, ld. Counsel has alternatively pleaded that, in the event of the subject goods being held ineligible for capital goods credit, the benefit of input duty credit should be allowed in terms of the Tribunal s Larger Bench decision in Commissioner v. Modi Rubber Ltd. Others, 2000 (119) E.L.T. 197 (T-LB) = 2000 (38) R.L.T. 718 (CEGAT-LB). 2. Ld. DR submits that, during the period of dispute, the admissibility of capital goods credit depended on the tariff classification of the goods. Storage tanks falling under Chapter 73 of the CETA Schedule were not specified for capital goods credit during that period. It was only w.e.f. 1-3-2001 that these goods were added to the list of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 57Q as recast w.e.f. 1-3-1997 would arise for consideration. It is significant to note that, till it was amended by Notification No. 14/96-C.E. (N.T.) dated 23-7-1996, the Rule allowed capital goods credit on plant, equipments, machines, appliances, tools etc., which were used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products as also on components, spare parts and accessories of such plant, equipments, machines etc. used for the aforesaid purpose vide clauses (a) and (b) of Explanation (1) to Rule 57Q(1) as the rule stood until 22-7-1996. But the tanks used for storage of molasses (by-product) were not used for the aforesaid purpose, i.e., for producing or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied against items (a) to (c) above , formed part of the definition of capital goods under the said Explanation (1) inserted under Rule 57Q by Notification No. 14/96-C.E.(N.T.) dt. 23-7-1996. But the said explanation was in place only till 28-2-1997. The intervening period (23-7-1996 to 28-2-1997) is not a part of the period of dispute in this case. Even otherwise, as already noted, clause (d) is of no aid to the appellants claim. It is also noticed that a similar clause was available under the explanation inserted under Rule 57Q(1) by earlier Notification No. 11/95-C.E.(N.T.) and this clause (No. ix) reads thus; components, spares and accessories of the goods specified against items (i) to (viii) above. But the appellants have no c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit under Rule 57Q during the period of dispute. Neither these goods nor the tanks fabricated therefrom were falling under any of the tariff headings specified for Modvat purpose under Rule 57Q during the said period. Admittedly, it was as late as on 1-3-2001 that the rule-making authority included storage tanks (irrespective of tariff classification) in the category of eligible capital goods for Modvat purpose. Nobody has argued before me that this amendment has retrospective effect. In the case of Bhansali Engg. Polymers (supra) cited by the DR, the period of dispute was April-May 1995 i.e. after Rule 57Q(1) was amended by Notification No. 11/95-C.E.(N.T.). The Tribunal held that the materials used in the fabrication of storage tanks were ..... X X X X Extracts X X X X X X X X Extracts X X X X
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