1999 (10) TMI 219

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....pted to avail themselves of the facility of Modvat credit on capital goods under Rule 57Q of the Central Excise Rules, 1944. Accordingly they took Modvat credit of the Central Excise duty paid on various goods treating the same as 'capital goods' under Rule 57Q ibid for the period May, 1994 to January, 1995, the total amount of credit was so taken amounting to Rs. 1,30,331.00. The jurisdictional Asstt. Commissioner of Central Excise issued six Show Cause Notices, for various periods between May, 1994 and January, 1995, asking the party to show cause why the Modvat credits taken for the respective periods should not be held to be inadmissible and hence recoverable from them. In adjudication of such SCNs, the Asstt. Commissioner held the enti....

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....ated the findings of the Adjudicating Authority as well as the grounds of appeal. The ld. Advocate has, on the other hand, endeavoured to counter the Revenue's case by citing the decision of the Tribunal's Larger Bench in the case of M/s. Jawahar Mills Ltd. v. C.C.E., Coimbatore - [1999 (108) E.L.T. 47 (Tribunal)] and submitting that all the goods in question would be found to be eligible as 'capital goods' for the purpose of Modvat credit under Rule 57Q ibid in the light of the ratio of this decision of the Tribunal. The ld. Advocate has further cited Final Order Nos. A/832-838/00-NB, dated 16-8-1999 passed by the Tribunal's Northern Bench (Single Member) in Appeal Nos. E/16-22/99-NB filed by the Department against M/s. Raja Ram Maize Prod....

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....ty rightly held that the said goods being spare parts of Electric Motor would be eligible for credit under Rule 57Q ibid. In respect of 'Steam Stainer' and 'Safety Valves', the Commissioner (Appeals) found that the said goods were admittedly used with the boiler installed in the factory and that the steam generated by the boiler was used in the production of the final product. Since boiler had already been held to be 'capital goods' by the Tribunal in the case of C.C.E., Meerut v. Triveni Engg. Works Ltd. - [1997 (96) E.L.T. 655 (T)], all parts/components/ accessories of boiler (including Steam Stainer and Safety Valves) would also fall under the category of 'capital goods' and be eligible for credit under Rule 57Q ibid. This finding of the....