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TMI Blog2016 (7) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... Member (Technical) Sh. K.B. K. Raju, Authorised Representative for the Appellant. None for the Respondent. ORDER The above appeal is filed by Revenue against the order passed by Commissioner (Appeals) which allowed the MODVAT Credit availed on steel plates and sheets used in the manufacture of pipes. 2. The respondent, M/s Visakhapatnam Steel Plant are inter-alia, engaged in manufacture of Iron Steel products. They were availing facility of MODVAT Credit of duty paid on inputs capital goods. They availed credit on steel plates sheets as inputs. It was alleged by department that respondents wrongly availed MODVAT Credit by diverting the steel items for non-manufacturing operations like fabrication, maintenance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of erstwhile Central Excise Rules, 1944. It is also the case of department that steel pipes were not covered by Notification No. 67/95- CE dated 16.03.1995 as steel pipes did not come within the definition of capital goods. Pipes and tubes were included in the definition of capital goods only w.e.f. 01.03.1997. That steel pipes were not covered under Notification No. 68/95 - CE dated 16.03.1995 also, since they were not manufactured in workshop and were not meant for repairs or maintenance of machinery installed in the plant. Therefore, steel pipes though chargeable to duty, the respondents did not discharge their duty liability on such goods manufactured by them. Again, in terms of erstwhile Rule 57C ibid, credit is not to be allowed, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Government hereby exempts goods specified in column (2) of the Table hereto annexed (hereinafter referred to as 'inputs') manufactured in a factory and used within the factory of production, in or in relation to the manufacture of final products specified in column (3) of the said Table, from the whole of the duty of excise leviable thereon, which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986): Provided that nothing contain in this Notification shall apply to inputs used in or in relation to the manufacture of final products which are exempt from the whole of duty of excise leviable thereon or is chargeable to nil rate of duty. 11. Again, Rule 57D clause (2) reads as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Bharat Electric Steel Company Ltd., vs CCE, Calcutta [1995 (77) ELT 289 (Tri)]. In the said case, MODVAT Credit was availed on inputs used to prepare sand moulds and sand cores for manufacturing the final product viz: steel castings. The relevant portion of the judgment reads as under: The expression, 'intermediate goods' as occurring in Rule 57D has not been defined. This Rule, it is to be noted, is meant to cover a vast variety of excisable goods not only to chemicals but also to other industrial and consumer goods. When the Department states that resins etc. i.e. the inputs, which are for consideration before us, have been utilized in the manufacture of sand moulds and not in relation to the manufacture of iron/steel cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., vs CCE [1991 (55) ELT 342 (Tri)] it was observed as under : There is no dispute that the paper bags are exempted from payment of duty. Under Rule 57C the benefit of MODVAT Credit in respect of the inputs is not available if the same are used for manufacture of the final product which is exempt from payment of duty. According to Rule 57D, credit of specified duty allowed in respect of any inputs shall not be denied or varied on the ground that any intermediate products have come into existence during the course of manufacture of the final product and that such intermediate products are for the time being exempt from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty. It is pertinent to note that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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