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TMI Blog2005 (12) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... piston valves to the principal manufacturer [M/s UCAL Fuel Systems] was effected under cover of Rule 57F (4) challans without payment of duty and the latter used the said goods in the manufacture of carburetors, which were cleared, on payment of duty, to M/s. Maruti Udyog Ltd. The capital goods in question were used exclusively for the manufacture of such piston valves during the above period. The department took the stand that, as the capital goods were used exclusively for the manufacture of "exempted goods" contrary to the declaration filed under Rule 57F by the assessee, the same was liable to be recovered under Rule 57U (2) and also the assessee was liable to be penalized under Rule 57U (6). The original authority upheld this stand of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the other hand learned Consultant for the respondents has submitted that the above Larger Bench decision is in their favour. He has relied on the following observation made by the Larger Bench in para 3 of its judgment: "It is only under the special procedure laid down in terms of Rule 57F (3) that the duty does not get paid at the job worker's end at the time of clearance of the goods, but ultimately gets paid at the manufacturer's end". Learned Consultant has also relied on the Tribunal decision in Ispat Metallics Ltd. Vs. CCE - 2005 (70) RLT 195 (CESTAT-Mum.) wherein the division bench interpreted the word "used" occurring in the definition of capital goods and held that any capital goods to be eligible for credit need not be actua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dents. 5. Support also could be legitimately claimed by the respondents from the division bench decision in Ispat Metallics Ltd. (supra) also. The term "used" occurring in the definition of capital goods was examined by the Bench as under: "Alter determining as above, we find the word used' in the definition of capital goods will not and cannot be interpreted to mean that it should be actually in use. The potential use by the manufacturer, at a later date would also entitle the credit The exclusive use as already held, is not contemplated. The plant in this case is capable for use for converting the iron or fines to be used by the appellants at a future date. The word 'used' can denote be intermittent and or use sometime in future; we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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