TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether electrical wires and cables were capital goods eligible for Modvat credit under Rule 57Q of the Central Excise Rules, 1944. (ii) Whether vacuum circuit breakers were capital goods eligible for Modvat credit under Rule 57Q of the Central Excise Rules, 1944.
Issue (i): Whether electrical wires and cables were capital goods eligible for Modvat credit under Rule 57Q of the Central Excise Rules, 1944.
Analysis: The Tribunal found that the question was already covered by the Larger Bench decision in Jawahar Mills. The wires and cables were treated as items falling within the scope of capital goods for the purpose of Modvat credit under the rule.
Conclusion: Electrical wires and cables were capital goods and were eligible for Modvat credit.
Issue (ii): Whether vacuum circuit breakers were capital goods eligible for Modvat credit under Rule 57Q of the Central Excise Rules, 1944.
Analysis: The Tribunal held that vacuum circuit breakers are self-contained items used for protection of electrical machinery in the factory and, by implication, fall within the category of capital goods. The objections raised by Revenue were treated as covered by the Larger Bench ruling.
Conclusion: Vacuum circuit breakers were capital goods and were eligible for Modvat credit.
Final Conclusion: The departmental appeals failed and the assessee's entitlement to Modvat credit on both categories of items was sustained.
Ratio Decidendi: Items used as integral electrical equipment or components for factory machinery may qualify as capital goods under Rule 57Q when the governing precedent interprets the expression broadly enough to include them.
TaxTMI 
