9911796707
TMI Blog2006 (12) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Herd learned counsel for the parties. 2. The following question has been raised as a substantial question of law for consideration in this appeal:- "Whether in the facts and circumstances of the case, the Tribunal was justified in allowing the modvat credit on the tyres, tubes and flaps received by the assessee during the period 17.4.1999 to 23.7.1999 by treating them as a part of capital goods i.e. loader under Rule 57Q of the Rules, 1944 before Rule 57AA was introduced?" 3. The question framed at the time of admission on the basis of suggestions made by the Revenue is slightly off the mark of controversy raised in this petition as we shall presently see and needs to be re-framed. 4. The assessee has claimed to av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was also imposed with reference to Rule 173Q. 7. This order of adjudicating authority dated 13.9.2001 communicated vide letter dated 14.9.2001 was reversed by the Commissioner (Appeals) pointing out that in assessee's own case the loaders have been held to be capital goods eligible for modvat credit, as aforesaid being spares and accessories of the loaders as the principal capital goods they are also eligible for modvat credit. 8. The aforesaid order of the Commissioner (Appeals) was subjected to appeal before the Tribunal. The Tribunal affirmed the order of the Commissioner (Appeal) vide order under appeal. 9. Apparently, the question that arises for consideration is not whether the tyres, tubes and flaps in question were i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as item No.(v) provides that components, spares and accessories of the goods specified against item (i) to (iv) above. The item No.(v) has no further requirement that components, spares and accessories of the goods already enumerated must fall independently within the heading specified in item No.(i) to (iv). Apparently, that would have been rendering serial No.(v) itself redundant and otiose. The Tariff Act does not make distinction while prescribing rate for any item classified therein on the basis of end use of the product to which it is likely to be put. The Tariff Act primarily classifies end products to be subjected to Duty at a rate prescribed therein. This classification cannot by necessary implication be imported to operate while c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eping in view this distinction, if we were to view Rule 57Q it is clear that the item No.(v) in the table appended to Rule 57Q is related to use of any article as components, spares or accessories of the goods specified in item No.(i) to (iv) falling under various heads stated under item No.(i) to (iv), irrespective of its own independent classification under the Tariff Act. The eligibility of modvat credit is of any article which has been subjected to levy of duty independently depends on its end use as components, spares and accessories of goods specified against serial No.(i) to (iv) above. 13. Sub-rule (7) of Rule 57Q is relevant for the purpose which reads as under:- "(7) The credit of the specified duty on capital goods [o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of specified goods at the factory and the respondent assessee has used all articles in question as components, spares and accessories of the loaders. Hence the same are eligible for availing modvat credit in respect of the duties paid thereon. It is not disputed before us that modvat credit availed in respect of various tyres, tubes and flaps was in respect of aforesaid articles used as components, spares and accessories of loaders. In the circumstances, the question of withdrawing the modvat credit availed by the assessee in respect thereof simply does not arise. The subsequent insertion of Rule 57AA could have made difference in respect of time as to when modvat credit of Duty paid on such principal capital goods could be availed inasmuch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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