9911796707
TMI Blog2002 (12) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... ut any change in substance does not stand to reason. In fact Commissioner (Appeals) vide Order-in-Appeal No. 234/97, dtd. 7-10-97 has held that 'Arc-welding electrodes' are undoubtedly eligible for Modvat credit under Rule 57Q. As a matter of fact even earlier there were allowed for Modvat credit under Rule 57A as 'inputs'. Hence, Assistant Commissioner's order in disallowing Modvat credit on 'Arc-Welding Electrodes' is not correct and not in accordance with the decisions of higher appellate authorities directions and hence not sustainable. (b) As regards Steel Tubes and Pipes on the ground that these are accessories of the D.G. set and are not used for production or processing of goods is not correct for the reasons submitted in reply to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ginal Authority is not correct and legal and does not arise. Accordingly the appellants pleaded to set aside the Order-of-Original Authority and to hold that the credit is admissible to the appellants on the impugned goods under Rule 57Q." and allowed the appellants to avail Modvat credit on the impugned item namely, Welding Electrodes. 3. The Revenue has come in appeal on the ground that Welding Electrodes used in the maintenance of machineries and welding of the machinery parts cannot be considered as capital goods under Rule 57Q of Central Excise Rules, 1944 and has relied upon the decisions of the Tribunal in the case of M/s. Kanoria Sugars and General Manufacturing Co. v. Commissioner of Central Excise reported in 1996 (87) E.L. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... outh Zonal Bench, Chennai is final. 6. After considering the submissions made by both sides and submissions made by the assessee that Welding Electrodes were used in maintenance of machinery and therefore the party availed Modvat credit under Rule 57Q of Central Excise Rules, 1944 and on perusal of Para 40 of Larger Bench decisions in Jawahar Mills, (supra), I find that Welding Electrodes are eligible capital goods. However the issue whether capital goods when used for maintenance purpose would be eligible for Modvat credit was not decided in the Jawahar Mills case. Therefore with due respect to the Order of the Tribunal's Chennai Bench Final Order No. 3089/1999, dated 3-12-99 where goods are wires and cables as well as welding electrodes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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