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TMI Blog2017 (6) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... ersus M/S Rajasthan Spinning & Weaving Mills Ltd. [2010 (7) TMI 12 - SUPREME COURT OF INDIA], in the background of the circular issued by the Government of India has held that the benefit of modvat credit under Rule 57Q would be applicable to all components, spares and accessories of the specified goods, irrespective of their classification under any chapter heading - petition allowed - decided in favor of assessee. - C.M.A.Nos.724 of 2016 and 1487 of 2017 (C.M.A.SR.No.9364 of 2016) and C.M.P.No.7995 of 2017 - - - Dated:- 28-4-2017 - Rajiv Shakdher And R. Suresh Kumar, JJ. For the Appellant : Mr.C.Saravanan For the Respondents : Mr.G.M.Syed Nurullah Sheriff ORDER ( Judgment of the Court was delivered by Rajiv Shakdher, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CESTAT was justified in passing order without giving opportunity to the appellant to submit their arguments? 4. The record would show that, C.M.A.No.1487 of 2017 (C.M.A.SR.No.9364 of 2016) assails the order dated 01.09.2005, while C.M.A.No.724 of 2016 assails the order dated 09.09.2015. 5. The short issue, which arose for consideration before the Tribunal was, as to whether, the appellant was entitled to Modvat credit on spares, components and accessories of machines, i.e., capital goods, falling under Heading 84.74 of the Central Excise Tariff Act, 1985, for the period, spanning between 23.07.1996 and 31.08.1996. 5.1. The appellant, based on its understanding of the Notification No.25/96-CE NT, dated 31.08.1996 and the Circular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of availing the Modvat credit, notwithstanding the fact that they might not be capital goods within the meaning of clauses (a) to (c). However, while specifying the headings, it is apparent that goods falling under Heading 84.74 were not included therein for the purpose of treating it as capital goods for availing of modvat credit under Rule 57Q. Rule 57Q was further amended under Notification No.14/96-CE dated 23.7.1996, wherein, in sub rule (1), Explanation for 'capital goods' was substituted and the goods listed from clauses (a) to (d) as extracted above were brought under the definition of 'capital goods'. Once again, Heading 84.74 was omitted from the 'capital goods' definition for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to (c) of the said explanation cover specified capital goods falling under Chapters 82, 84, 85 and 90 and clause (d) covers components, spares and accessories of the said capital goods. 2. It has been brought to the notice of the Board that clause (d) of Explanation (1) is being interpreted by some of the field officers covering only such components, spares and accessories which would fall under Chapters shown under clauses (a) to (c) and credit is allowed only on those components, spares and accessories which are covered under the said chapters. 3. The matter has been examined. With effect from 23.7.1996, capital goods eligible for credit under Rule 57Q have been specified either by their classification or by their description. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the fabrication of chimney would fall within the ambit of capital goods and that the assessee was entitled to avail modvat credit in respect of the disputed items under Rule 57Q. In fact, the said decision was followed by this Court in respect of the assessee's own case on earlier occasion in C.M.A.No.3101/05 by order dated 13.12.2012. Having accepted the case of the assessee by applying the Apex Court decision reported in 2010 (255) ELT 481 (Commissioner of Central Excise v. Rajasthan Spinning and Weaving Mills Ltd), this Court rejected the Revenue's contention and affirmed the view of the Tribunal that the impugned goods were capital goods entitled to credit under Rule 57Q of Central Excise Rules. 13. It is seen from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.1996 that the benefit of modvat credit under Rule 57Q would be applicable to all components, spares and accessories of the specified goods, irrespective of their classification under any chapter heading, we have no hesitation in granting the relief in favour of the assessee, thereby the order of the Customs, Excise and Service Tax Appellate Tribunal is set aside. Consequently, the Civil Miscellaneous Appeal is allowed. No costs. 8. Given the aforesaid circumstances, Question No.2 is answered in favour of the Assessee and against the Revenue. The Tribunal could not have passed the impugned order, which is, contrary to the ratio of the judgment rendered in : India Cements Limited case. 8.1. In so far as Question Nos.1 and 3 are con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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