1997 (1) TMI 309

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....ndent. [Order]. -  This is an appeal filed by the appellants against the orders passed by the Commissioner (Appeals), Trichy. This present appeal relates to the dispute in availment of Modvat credit of capital goods in terms of Rule 57Q. The Commissioner (Appeals) did not allow the Modvat credit with respect to Electrical Wires and Cables. 2. The ld. Advocate Shri T. Ramesh appe....

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....at credit under Rule 57Q of the Central Excise Rules, 1944 with respect to the Wires and Cables. In this connection he relied on the decision of this Bench in Order No. 939/1997, dated 4-4-1997 wherein at paras 2 & 3, the Tribunal held as follows :- "2. The learned Consultant for the appellants at the outset conceded the plea of the revenue in the case of Room Air-conditioners figuring at ....

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....e held as under : I observe that the scope of the term capital goods has been set out by way of definition in the explanation to Rule 57Q, the main provisions under which the Modvat credit in respect of capital goods has been allowed. This definition as would be seen from the above cannot be taken to cover electric cables of the type referred to in the impugned order. The learned lower authorit....

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....es for a substantive modification of the rule and it is only by a specific mention the cables and wires can be taken to have been included while earlier Rule 57Q was not covering the same. We, therefore, hold that there is a force in the plea of the Revenue and we are of the view that Modvat credit could not have been allowed in respect of these items. The pleas of the revenue so far as the wires ....