9911796707
TMI Blog2009 (1) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... of credit of Rs. 7,538/- is irregular inasmuch as the said computer is used only to feed details like drawings of the components manufactured and to design/generate the drawings of new components and does not find its usage in the manufacture of their final products. The computer does not fall under the scope of the definition of Capital Goods under Rule 57Q of Central Excise Rules, 1994. A show cause notice was issued to the appellants to show cause as to why the said irregular credit be not denied to them and the amount be demanded from them. The appellants contested the show cause notice before the lower authorities. Appellants made various submissions, mainly arguing that the said computer is an integral part of their production acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the records. The issue involved in this case is whether the appellant is eligible for the credit of duty paid on the personal computer during the relevant period. It is undisputed that the appellant is using the said personal computer for designing and drawing the components and to store manufacturing process and to transmit the same to the computer on CNC Machine. It is also undisputed that the computer is used for supporting the manufacturing activities for meeting the quantity and quality of the final products manufactured by the appellants. We find that during the relevant period i.e. January 1996 when the appellant took the credit, provisions of Rule 57Q stood as under. 57Q Applicability - (1) The provisions of this section sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oducts; (b) components, spare parts and accessories of the aforesaid machine, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose; and (c) moulds and dies, generating sets and weigh-bridges used in the factory of the manufacturer. (1) specified duty means duty of excise or the additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975). (2) Notwithstanding anything contained in sub-rule (1), no credit of the specified duty paid on capital goods shall be allowed if such duty has been paid on such capital goods before the 1st day of March 1994. The above said Rule does not indicate any exclusion or inclusion of the computer from availment of credit. We find that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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