9911796707
TMI Blog2005 (10) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of credit involved. 2. We heard the rival contentions. Much case law has developed since the impugned order was passed. By now it is almost settled as to the scope of Rule 57Q under the erstwhile Central Excise Rules, the kind of goods covered under the definition of capital goods and the ones which are not. 3. The goods covered in appeals E/589, 591 and 592 are covered in the various decisions of the Tribunal in favour of the appellants. The Supreme Court in the case of Jawahar Mills Ltd. [2001 (132) E.L.T. 3 (S.C.)] held that the language used in the Explanation (1) of the Rule is very liberal. If any of the items enumerated in Explanation 1(a) and 1(b) is used for any purpose mentioned therein for the manufacture of final pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines and SPM are integrally connected with the equipments and tanks within the factory through pipelines and instrumentation. It is commercially not sensible to run the refinery of the size in question without installation of SPM used in connection with import of crude by giant crude tankers. 1.3 It is also undisputed fact that the system is used for carrying the raw materials to the tanks located within the factory. Therefore, it is in the nature of material handling equipment and covered by the definition of capital goods under Explanation 1(a) to Rule 57Q. As per the bills of entries in question, SBM has been classified under Heading No 98.01, which itself establishes SBM is in the nature of machinery etc. duly covered by Rules 57Q. 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of rope-way used for the purpose of transporting crushed lime stone from the mines located 4.2 kms. away from the factory are entitled to Modvat credit or not. The Hon'ble Supreme Court while allowing the appeal followed its earlier decision in the case of J.K. Udaipur Udyog [2005 (183) E.L.T. A159] approving Tribunal's decision in 2002 (147) E.L.T. 996. The Tribunal in J.K. Udaipur followed their earlier decision in Pepsico Holdings [2001 (130) E.L.T. 193]. It has to be seen as to what the Tribunal held in J.K. Udaipur Udyog. In para 4 of J.K Udaipur Udyog the Tribunal ruled :- "……we note that similar issue came up before the Tribunal in the case of CCE, Chennai v. Pepsico (India) Holding (supra) in which it was held that Modvat credit a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal products. Thus this definition is restrictive unlike the capital goods falling under Heading 98.01. It is an admitted fact that the SPM in question does not bring about any change in any substance for the manufacture of final products. Since it does not fall under the definition of capital goods the items which are parts thereof namely anchor piles, anchor chain stoppers and other items such as offshore bands, half shell bracket, anode pipes, NPS, offshore line pipe. ERW steel pipes will also not be eligible for credit under Rule 57Q. 9. Thus a total credit of Rs. 3,53,38,377/- taken on the items mentioned at Sl. No. 40 and 41 of the list (stated to have been reversed under protest) is not admissible. The other items in appeal E/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 027 6 Hydrojetting Systems 8424.30 6 11 393 6 11 393 7 Control gear box, socket, junction box & parts, Exe. Junction box, Inc. safety, safety well glass, Metaflor low plug, NS4A fuse / break glass 8543.00 8536.90 8538.00 8543.00 5 23 526 5 23 526 8 Refractory Materials : Firelite LW-HS, Firelite Cerablock 6902.20 4 15 862 4 15 862 9 Bus bar earthing trolley, Earthing truck for cable & earthing truck for bus bar, Power connectors, VAC load contact, Pin mounting, Connectors, Junction Box, Electric equipments, Switch socket, Well glass fittings, Neutral grounding resistor, electric resistor, Imported - Electrical unit Single/three phase DPST, normally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44 854 22 Jointing Kits 8544.00 43 927 43 927 23 Flameproof/Explotion proof apparatus/Equipments 8668.00 38 668 38 668 24 Damper 7308.90 15 730 22 258 37 988 25 Main lighting distribution, switch socket & spare parts 8537.00 8537.38 36 672 36 672 26 Components of Air Handling unit (AHU) - Dampers, Doors, Louvars, door (Steel door log AHU) 7306.90 8479.20 7308.90 8479.00 36 519 36 519 27 Lower structure & upper structure 8466.00 36 175 36 175 28 Coupling motor side 8483.00 31 695 31 695 29 Air Unit - spares for air unit AHU for spinni ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
