1999 (9) TMI 250 - AT - Central Excise

Appellate Tribunal rules on eligibility of items as capital goods under Rule 57Q

The Appellate Tribunal CEGAT, New Delhi, ruled on the eligibility of items as capital goods for Modvat credit under Rule 57Q. The judgment allowed the ... Modvat on capital goods Issues:1. Eligibility of items as capital goods for Modvat credit under Rule 57Q.2. Classification of power supplier capacitors as capital goods for Modvat credit under Rule 57Q.Issue 1: Eligibility of items as capital goods for Modvat credit under Rule 57Q.The judgment involves 12 appeals, where the appellant M/s Samtel India Limited filed Appeal Bearing Nos. 1078, 1080-1083/98-NB, and the Department filed appeals bearing Nos. E/1671 and E/2317 to 2322/98-NB. The central issue pertains to the eligibility of various items as capital goods for availing Modvat credit under Rule 57Q of the Central Excise Rules. The items in question include cables, transformers, induction coils, connectors, stainrode, welding electrodes, video distributors, solenoid valves, latex WPP disc, pressure regulator, O-Ring, vane/rotor for CRT, panel, transmitting tube, and power supplier capacitors. The appellant argued that the items are covered by specific legal decisions, citing cases such as Jawahar Mills Ltd. v. C.C.E., C.C.E. v. Gangeshwar Ltd., and others to support their claim.Issue 2: Classification of power supplier capacitors as capital goods for Modvat credit under Rule 57Q.The judgment further delves into the specific issue of whether power supplier capacitors can be considered as capital goods for availing Modvat credit under Rule 57Q. The appellant relied on legal precedents, including the case of M/s Jawahar Mills Ltd. v. C.C.E., to argue for the eligibility of the items in question. The Department, represented by Shri S. Ramanathan, reiterated its stance on the matter. After considering the arguments and legal references provided, the judgment, following the decision in M/s Jawahar Mills Ltd. v. C.C.E., concluded that the items under dispute are indeed eligible capital goods under Rule 57Q. Consequently, the appeals filed by the assessee were allowed, while the appeals filed by the Department were dismissed.In summary, the judgment by the Appellate Tribunal CEGAT, New Delhi, addressed the eligibility of various items as capital goods for Modvat credit under Rule 57Q of the Central Excise Rules. It analyzed the specific items listed in the appeals, considered legal precedents cited by the appellant, and ultimately ruled in favor of the assessee, allowing their appeals and dismissing those filed by the Department based on the established eligibility criteria.