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of <h1>Tribunal decision on Modvat eligibility for various goods under Rule 57Q</h1> <h3>COMMISSIONER OF CENTRAL EXCISE, JAIPUR Versus JK. CEMENT WORKS</h3> COMMISSIONER OF CENTRAL EXCISE, JAIPUR Versus JK. CEMENT WORKS - 2000 (125) E.L.T. 480 (Tribunal), 2000 (36) RLT 451 Issues Involved:1. Modvat credit eligibility of various goods as 'capital goods' under Rule 57Q of the Central Excise Rules, 1944.2. Disallowance of Modvat credit on certain goods by the Assistant Commissioner.3. Appeals against the lower Appellate Authority's decision on Modvat credit eligibility.Summary:Issue 1: Modvat Credit Eligibility of Various Goods- Loco Spare Parts, Wire Rope, and Bearings: The Commissioner (Appeals) held these items to be Modvatable 'capital goods' under Rule 57Q. The Revenue challenged this, arguing that Locomotives and their parts do not qualify as 'capital goods' under the said rule. The Tribunal, however, upheld the Commissioner's decision, citing the Tribunal's Larger Bench decision in the case of Jawahar Mills Ltd.- Parts of P.L.C.: The Commissioner (Appeals) remanded the issue for fresh decision, but the Tribunal found these parts to be Modvatable 'capital goods' as they are integral to the manufacturing machinery.Issue 2: Disallowance of Modvat Credit by the Assistant Commissioner- Goods Disallowed: The Assistant Commissioner disallowed Modvat credit for items such as Cables, Electrical Motors, Electrical Items, Castables, Supporting Structures, M.S. Angles, Bars, Rods, Hose Assembly, and M.S. Tubes.- Appeals by the Assessee: The assessee challenged the disallowance, arguing that these items are essential for the manufacturing process and should qualify as 'capital goods' under Rule 57Q.Issue 3: Appeals Against Lower Appellate Authority's Decision- Revenue's Appeal: The Revenue's appeal against the modvatability of Loco Spare Parts, Wire Rope, and Parts of P.L.C. was rejected by the Tribunal.- Assessee's Appeals: The Tribunal allowed the assessee's appeals to the extent that Cables, Electrical Motors, Electrical Items, Castables, Supporting Structures, M.S. Angles, Bars, Rods, and M.S. Tubes were held to be Modvatable 'capital goods'. The Tribunal upheld the disallowance of Modvat credit for Hose Assembly, Hand Pump, and Grease Pump.Conclusion:The Tribunal upheld the Commissioner (Appeals)'s decision regarding the modvatability of Loco Spare Parts, Wire Rope, and Bearings, and found Parts of P.L.C. to be Modvatable 'capital goods'. The Tribunal also allowed Modvat credit for Cables, Electrical Motors, Electrical Items, Castables, Supporting Structures, M.S. Angles, Bars, Rods, and M.S. Tubes, while disallowing credit for Hose Assembly, Hand Pump, and Grease Pump. The assessee's appeals were allowed to the extent mentioned, and the Revenue's appeal was rejected.
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