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TMI Blog2022 (9) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... at the appellant was not eligible for the duty credit in respect of the 'Guide Car', the assessee - M/s Steel Authority of India Limited has preferred the present appeal. 2. At the outset, it is required to be noted that the dispute is with respect to Modvat credit on 'Guide Car' claimed by the appellant - assessee. 3. The facts leading to the present appeal for the purpose of issue involved in the present appeal in a nutshell are as under: A show cause notice dated 9.5.2000 was issued to the appellant seeking to deny Modvat credit amounting to Rs.3,09,78,465/- availed by the appellant on capital goods, i.e., 'Guide Car' during the month of March, 2000. As per the show cause notice, the Modvat credit on 'Guide Car' was not available since it was classifiable under Chapter subheading 8603.00 of the Central Excise Tariff Act, 1985 (hereinafter referred to as the 'Tariff'). 3.1 The appellant replied to the show cause notice. It was the case on behalf of the appellant - assessee that there was no reason as to why 'Guide Car' should be classified under Chapter sub-heading 8603.00. According to the appellant - assessee, 'Guide Car' is classifiable under Chapter sub-heading 8428.90, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1 It is vehemently submitted by the learned Senior Advocate appearing on behalf of the appellant that 'Guide Car' was used for the purpose of transportation of hot coke coming out of the Coke Oven Battery and therefore it can be said to be a 'component' and/or part of the Coke Oven Battery. Therefore, it is vehemently submitted that assuming that 'Guide Cars' are held to be classifiable under Chapter sub-heading 8603.00, in that case also, the same should be considered for capital goods credit as 'component' of the Coke Oven Battery. 4.2 In the alternative, it is submitted by Shri V. Sridharan, learned Senior Advocate appearing on behalf of the appellant that in the present case supply of 'Guide Car' was in the month of November, 1999 and the 'Guide Car' was classified by the appropriate authority under Chapter sub-heading 8603.00 subsequent to those supply and therefore the classification of 'Guide Car' under heading 86.03 shall not be made applicable retrospectively and it shall be made applicable prospectively. Reliance is placed on the decision of this Court in the case of Collector of Central Excise, Baroda v. Cotspun Limited, (1999) 7 SCC 633. 4.3 It is further submitted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant has claimed the Modvat credit under Rule 57Q of the Rules 1944 on 'Guide Car'. As per Rule 57Q with respect to goods falling under Chapter 84 as mentioned at serial No. 2 in the Table attached with the Schedule to the Tariff, there shall be credit of duty paid on capital goods used by the manufacturer. As observed hereinabove, 'Guide Car' shall not fall under Chapter 84. Therefore, it is the case on behalf of the appellant that it will fall at serial No. 5 of the Table, namely, 'components'. Rule 57Q of the Rules 1994, relevant for our purpose, reads as under: "Rules 57Q. Applicability - (1) The provisions of this section shall apply to goods (hereinafter in this section, referred to as the 'final products') described in column (3) of the Table given below and to the goods (hereafter in this section referred to as "capital goods"), described in the corresponding entry in column (2) of the said Table used in the factory of the manufacturer of final products. TABLE S.No. Description of capital goods falling within the Description of final Schedule to the Central Excise Tariff Act, 1985 (5 of products 1986) and used in the factory of the manufacturer (1) (2) (3) 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s assembled out of several parts forming that machinery, those machineries, those parts, even after their being filled may retain their individuality or identity." 25. The meaning of the expression "components" as defined in the dictionary is accepted and adopted by this Court in Star Paper Mills Ltd. v. CCE [Star Paper Mills Ltd. v. CCE, (1989) 4 SCC 724 : 1990 SCC (Tax) 138] and the same is quoted with approval in CCE v. Allied Air- Conditioning Corpn. [CCE v. Allied Air-Conditioning Corpn., (2006) 7 SCC 735]. 26. In order to determine whether a particular article is a component part of another article, the correct test would be to look both at the article which is said to be component part and the completed article and then come to a conclusion whether the first article is a component part of the whole or not. One must first look at the article itself and consider what its uses are and whether its only use or its primary or ordinary use is as the component part of another article. There cannot possibly be any serious dispute that in common parlance, components are items or parts which are used in the manufacture of the final product and without which, final product cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier and the supplier classified the 'Guide Car' under Chapter subheading 8428.90, though it was classifiable under Chapter sub-heading 8603.00. That thereafter the appropriate authority classified the 'Guide Car' under Chapter sub-heading 8603.00. Therefore, it will relate back to the original claim and/or relate back to the date of supply/selfassessment. 11.1 Now so far as the reliance placed upon the decision of this Court in the case of Cotspun Limited (supra) is concerned, the same shall not be applicable to the facts of the case on hand. In the case before this Court, it was a case of an approved classification list sought to be corrected subsequently and to that it is observed that the levy of excise duty on the basis of an approved classification list is the correct levy, at least until the correctness of the approval is questioned by the issuance of a show cause notice to the assessee. Therefore, on facts, the aforesaid decision shall not be applicable to the facts of the case on hand. 12. In view of the above and for the reasons stated above, the present appeal with respect to Modvat credit claimed by the appellant on 'Guide Car' is hereby dismissed. The Adjudicating Aut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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