9911796707
TMI Blog2008 (8) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... 504 & 4096 of 2004-NB(S), whereby the appeal of the assessee (present respondent) is allowed (except for laboratory equipment), and one that of the Revenue, is dismissed. 2. The question of law involved in this appeal is as under: "Whether, Modvat credit can be allowed on the items, namely 'M.S. Angle', 'Cement' and 'Bitumen', which are used as construction material, under Rule 57Q of the Central Excise Rules, 1944? 3. Heard learned counsel for the parties. 4. Brief facts of the case are that respondent M/s. India Glycols Ltd., Kashipur (hereinafter referred as Unit) is engaged in manufacture of Monoethylene Glycol. Diethylene Glycol, Triethylene Glycol, Polyethylene Glycol and heavy Glycol, all falling under Chapter Heading No. 2905.90 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit on Inert and Spring, Ceramics Fibres, Enklo-N. 68, Lab Equipment, Cement, Bitumen, M.S. Angle and other items on the ground that these items do not form part of the capital goods or part of the plant and machinery. Thereafter, the assessee filed further appeal before the CESTAT, New Delhi, which set aside order dated 6-3-1997, vide order dated 16-12-1997, and remanded back the matter to the Commissioner (Appeals) for de novo decision. The Commissioner (Appeals), thereafter, decided the matter vide order dated 13-4-2004, allowing the Modvat credit to the Unit on Cement, Bitumen and M.S. Angle, Indicator and flow meter under Rule 57Q, and upheld the remaining part of the order of the Assistant Commissioner of Central Excise, Division Ram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 995 Central Excise (N.T.) dated 16th March 1995, whereby clause (d) and Clause (e) were added to the Explanation. Clause (d) and Clause (e) added in Explanation to Rule 57Q, read as under: "(d) Following goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and used in the factory of the manufacturer. (i) All goods falling under heading Nos. 84.02, 84.05, 84.06, 84.11, 84.12, 84.16, 84.17, 84.19, 84.21, 84.23, 84.25 to 84,28, 84.80, 85.05, 85.35, 90.11, 90.12, 90.13, 90.16, 90.17 and 90.24 to 90.31; (ii) Auxiliary plants falling under heading No. 84.04 for use with boilers of heading No. 84.02; (iii) I.C. engines (other than engines of motor vehicle) falling under heading No. 84.07 or 84.08 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advanced on behalf of the respondent only to the extent that the requirement for claiming Modvat credit in respect of an item under Rule 57Q read with Section 3 of Customs and Tariff Act, 1985, in view of the language used in the Explanation (1) to said Rule, is that such items must have been used for the manufacture of the final product. We also agree that the meaning of expressions 'in the manufacture' and 'for the manufacture' are different. The expression 'in the manufacture' while refers to the items used in manufacturing of the final product, the expression 'for the manufacture' covers the other items which may not be necessarily part of the new manufactured product, but used in the machinery or plant, for the purposes of manufacturin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M.S. Angle were used by the Unit in joining the connecting M.S. pipes in manufacturing the goods produced by the Unit. As such, in respect of 'M.S. Angle', the CESTAT has rightly upheld Modvat credit, allowed to the Unit. 8. For the reasons as discussed above, we hold that the Modvat credit claimed by the Unit in respect of Cement and Bitumen is liable to be disallowed/recovered, and to that extent the order of the CESTAT, is set aside. However, Modvat credit allowed in respect of M.S. Angle needs no interference, as the same on the present facts and circumstances of the case, is covered within the erstwhile definition of 'capital goods' as it existed for the relevant period of 1994. under Rule 57Q of the Central Excise Rules, 1944. The q ..... X X X X Extracts X X X X X X X X Extracts X X X X
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