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of <h1>Court upholds Tribunal's decision on Modvat credit for fire hydrant system assembly, rejecting Revenue's appeal.</h1> The Court dismissed the Revenue's appeal against the Tribunal's decision to allow Modvat credit for goods used in the assembly of a fire hydrant system, ... Cenvat/Modvat Issues involved: Appeal by Revenue against Tribunal's order allowing Modvat credit, question of goods used for assembly of fire hydrant system falling under Chapter 84 and exclusion from definition of 'capital goods' under Rule 57Q of Central Excise Rules.Judgment Summary:1. The appeal was filed by the Revenue against the Tribunal's decision to allow Modvat credit of Rs. 61,572, despite the argument that the goods used for the assembly of fire hydrant system fell under Chapter 84 and should be excluded from the definition of 'capital goods' under Rule 57Q of the Central Excise Rules.2. The assessee availed Modvat credit during a specific period, which was initially allowed by the adjudicating authority but later disallowed by the Commissioner (Appeals) on the basis that the goods were excluded from the Modvat Scheme during that time. The Tribunal reinstated the decision of the adjudicating authority, noting that the goods were procured under specific chapter sub-headings that did not fall under the exclusion clause of Rule 57Q.3. The Revenue's counsel failed to demonstrate that the goods in question fell under the excluded entry in Rule 57Q. It was argued that the goods were capital goods based on a previous Supreme Court decision, but the Court held that this alone was insufficient to invoke the exclusionary clause unless the goods were covered by a specified entry in the rule.4. The Court rejected the contention that the goods were automatically considered capital goods, emphasizing that for exclusion under Rule 57Q, the goods must specifically fall under the exclusion clause. The Tribunal had already made a specific finding that the goods did not meet the criteria for exclusion.5. It was concluded that no substantial question of law arose from the Tribunal's order, leading to the dismissal of the appeal by the Court.
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