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TMI Blog2010 (12) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... re, the same would not be eligible for capital goods mdovat credit – Held that from the use of the disputed items, it is seen that they are integral part of machinery used for manufacturing of glass bottles, though the individually these items fall in the heading/sub headings which are excluded from serial No.1 to 4 of the Table annexed to Rule 57Q of Central Excise Rules, 1944 – Appeal are allowed X X X X Extracts X X X X X X X X Extracts X X X X ..... as inputs used for manufacturing finished goods. It is on this basis, the show cause notices were issued to the appellants for denial of modvat credit in respect of the above items, the recovery of the same alongwith interest and imposition of penalty on the appellant. The show cause notices were adjudicated by Orders-in-Original dated 28.5.08 and 12.5.08, by which the modvat credit in respect of the above items was denied and modvat credit demands in respect of the same were confirmed. Besides this, penalties were also imposed on the appellants under Rule 57U and Rule 173Q (bb) of Central Excise Rules, 1944. On appeal to the Commissioner (Appeals) against the orders of the Assistant Commissioner, the Assistant Commissioners orders were uph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any tariff heading; that these items are therefore covered the definition of capital goods and hence the same would be eligible for capital goods modvat credit, that if these items can not be treated as capital goods, the same would be covered by the definition of input as the same are used in or in relation to the manufacture of finished goods, and in view of this, the impugned order is not correct. He also pleaded that since this is case of interpretation, the imposition of penalty on the appellant was not called for. 4. Shri K.P.Singh,the learned SDR pleaded that while the thermotracer falls under heading 85.16, Automatic I.T. System Spraying Machine, I.T. Coating Cylinders and Computer Console 740-PLC fall under sub heading 8424.00, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturers of these items is under sub heading 8424.00, 2903.90 and 8471.00 respectively. There is no dispute that the items are not covered by serial No.1 to 4 of the Table annexed to Rule 57Q of Central Excise Rules, 1944. The question is as to whether the same can be treated as components, spares and accessories of the goods specified in the serial No.1 to 4 of the Table annexed to Rule 57Q of Central Excise Rules, 1944. The appellants plea that these items are in the nature of components, spares and accessories of the capital goods listed at serial No.1 to 4 of the Table annexed to Rule 57Q of Central Excise Rules, 1944, these items are used as components of the machinery for manufacture of glass bottles. From the use of the disputed items ..... X X X X Extracts X X X X X X X X Extracts X X X X
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