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TMI Blog2012 (11) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... at if impugned good is a capital good, Rule 57Q is applicable enabling party to claim credit of duty paid on capital goods by the manufacturer of specified goods. A manufacture is entitled to claim Modvat Credit on account of the excise paid on the components, spares and accessories of the goods exempt. If duty is paid on the components used in its manufacture, we see no reason why the manufacturer cannot claim Modvat credit for such duty, applicant has made out a strong prima facie case for waiver. Pre-deposit of the dues is waived and Stay petition allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... acture of final dutiable goods are exempt from payment of duty under Notification No. 67/95-CE. This issue is dealt with by the Tribunal and view taken by the Tribunal is upheld by the Hon'ble Himachal Pradesh High Court. Hence the demand is not sustainable. 6. Revenue relies on the findings of the lower authority and submitted that as no duty has been paid on the Plant as the Plant is not excisable and credit in respect of the inputs used in the fabrication of the Plant is not admissible. 7. We find that the Tribunal in the case of Gujarat Ambuja Cements Ltd (supra) dealt with this issue and held in para 7 as under: "7. We have carefully considered the rival submissions. We see force in the plea regarding applicability of Rule 57-T(7) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods. The Commissioner's finding in para 23 of the impugned order that it is only complete DG sets which are capital goods within the meaning of Rule 57-T(7) is not correct since credit of duty, if paid on DG sets, would have been availed of by the appellants herein under the provisions of Rule 57-Q itself, as DG sets were undoubtedly used in the factory of the appellants who are the manufacturers of final products - the place where the DG sets were assembled is the factory premises of the appellants cannot be treated as the factory of WDIL - and resort to the provisions of Rule 57-T (7) need not be made by the appellants for availing credit on complete DG sets. In the above view of the matter, we hold that the finding of the Commissioner in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ention that on the basis of the order passed by the CEGAT in the present case, manufacturers in other parts of the Country claim Modvat credit of the excise paid on the components of the DGPP. These matters were decided by different Bench of the CEGAT in favour of the manufacturers following the decision rendered by the CEGAT in the present case. The Revenue filed a reference petition against one such order in the High Court of Rajasthan in Jodhpur being other Tax Reference Civil Appeal No.18 of 2003 (Union of India v. Aditya Cement and another) which reference was rejected by a Division Bench of said High Court on 27-3-2008. Another case was decided another Bench of the CEGAT in the case of M/s. Century Rayon Ltd. The Revenue challenged th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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