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TMI Blog2008 (6) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... rol) Appellate Tribunal, New Delhi (in short called 'CEGAT') whereby the following substantial question of law has been preferred for adjudication :- "During the relevant period (May, 1995 to July, 1995) only those items were covered under the definition of Capital Goods which were used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products or which found mention under sub-clause (d) of Clause (1) under Explanation to Rule 57Q of Central Excise Rules, 1944. The question arises "whether plates/Rounds, TOR Steel, Channels, Angles, Sheets, Industrial Cables, Fuses, Plugs, Sockets, Electric Machinery used in Hydraulic system Motor Pumps/Electrical Motors were covered un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against them. The Deputy Commissioner, however, vide his order dated 8-8-1996 did not agree with the contention of the respondents in toto. He allowed the modvat credit to the respondents of Rs. 4,51,009.02 and disallowed credit to them of Rs. 2,28,857.38 and directed recovery of that amount under Rule 57-U/57-I of the Rules. No penalty was, however, imposed by him on the respondents. 5. For adjudicating the present question of law, it is necessary to refer to the relevant provisions of Rule 57Q of Central Excise Rules, 1944 (for short the Rules) as below :- "57-Q. Applicability. - (1) The provisions of this section shall apply to finished excisable goods of the description specified in the annexure below (hereinafter referred to as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pparatus, tools or appliances used for aforesaid purpose; and (c) moulds and dies, generating sets and weighbridges used in the factory of the manufacturer. (2) 'specified duty' means duty of excise or the additional duty under Section 3 of the Customs Tariff Act, 1975(51 of 1975)." 6. Feeling aggrieved by this order, the appeal was filed, while respondents filed only cross objections. The Commissioner, after hearing the parties, upheld the order of the Deputy Commissioner and rejected the appeal of the Revenue and cross objections of the respondents. 6. The petitioner has challenged the validity of the impugned order of the Commissioner (Appeals) allowing modvat credit in respect of certain goods as detailed in the orders itself on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h benefit was being given by the respondents are not directly covered under the category of capital goods. 10. It has been submitted that on analysis of different items claimed for by the respondent and on concurrent analysis of their uses by the Commissioner and by the learned Tribunal, it has become abundant that plates/Rounds, TOR Steel, Channels, Angles, Sheets, Industrial Cables, Fuses, Plugs, Sockets, Electric Machinery used in Hydraulic system Motor Pumps/Electrical Motors by their use are to be covered in the definition of capital goods more specifically in the light of observations made by the Supreme Court in Jawahar Mills Ltd. (supra). 11. After hearing learned counsel for the parties and after perusal of the documents, we are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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