1990 (1) TMI 184

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he appellants availed of MODVAT credit in respect of the Aluminium sheets to the extent of Rs. 85,132.18. The appellants were called upon to pay the amount of credit taken. The lower authorities have held that in terms of Rule 51A of the Central Excise Rules, the appellants were not eligible for the benefit of MODVAT credit of the duty paid on the Aluminium sheets, for the reasons that under Rule 57A(1) Aluminium sheets were part of the electrolysis equipment and since equipments were not covered by MODVAT Scheme being excluded for this purpose under Rule 57A, parts of the same were also not eligible. 2. The learned Counsel for the appellants pleaded that Aluminium sheets are used as cathodes in the electrolysis process for production of t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....time these have to be discarded as waste metal. Framers of the Rule, it is observed, have chosen to exclude certain categories of goods under Rule 57A for the purpose of MODVAT Scheme and the goods excluded are such which have to be in the nature of machines, machinery, plant, equipment, apparatus, tools or appliances. The plea of the Revenue is that Aluminium sheets are parts of Equipments and since equipments are excluded, parts of the same should also be taken to be excluded. No legal basis has been urged for this plea and there is no warrant to read the parts into the description of excluded category of goods under Rule 57A. No rule has been cited by the Revenue in support of this plea. It is observed that Aluminium sheets are an essent....