9911796707
TMI Blog2002 (12) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... ich reads as under : - "8. I have examined the position. Gasket set is a general purpose item capable of multifarious uses. It is not regarded in the commercial trade parlance as part of DG set. Hence, it cannot be considered as spare, component or accessory to the DG set. Goods falling under Ch. Heading 4016.99 are not eligible to the Modvat credit under Rule 57Q in terms of Notification No. 14/96-C.E. (NT), dated 23-7-96 as amended. Hence, Modvat credit on gasket set (4016.99) is not admissible. Similarly, goods falling under Heading No. 7308.90 and 8311 are not eligible to the Modvat credit as per the explanation under Rule 57Q of the Central Excise Rules, 1944 as introduced vide Notification No. 14/96-C.E. (NT), dated 23-7-96 as amend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the argument of the appellant that even if gasket is found to be for multifarious use, the appellants have bought it for use in their DG sets and used it for the same. There is no material on record to exhibit that it is not so used. Therefore, Modvat credit on gasket sets used as components/parts of a DG sets would be eligible for credit. (c) The welding electrodes have been denied the credit under Rule 57Q on the grounds that the case of Jawahar Mills Ltd. [2001 (132) E.L.T. 3 (S.C.)] ipso facto would not apply to the eligibility of the Modvat credit on welding electrodes which has to be judged with reference to the definition under Rule 57Q. There is no material produced by the appellants to claim that welding electrodes are used for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entities on which capital goods, Modvat credit is disallowed are spares for DG sets and steel castings. (a) As regards spares for DG sets, there is no finding that the entities brought into the factory has not been used in the DG sets. Therefore, the orders of the lower authorities are set aside as the spares admitted for the DG sets are found to be eligible for capital goods Modvat credit. (b) As regards the steel castings, the credit has been denied as they have been found to be general purpose item having multifarious uses. This, I find cannot be a reason for denial of credit on castings, which the appellants, the manufacturers of cement have specifically procured for their use. Therefore, Modvat credit on steel castings would be eli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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