1999 (7) TMI 328

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....Modvat credit on tubes, pipes and fittings of iron and steel was denied by the original adjudicating authority for the period of 23-7-1996 to 31-8-1996 on the ground that these items were specifically covered by the definition under Rule 57Q(1) only from 1-9-1996. Shri Bagaria has submitted that the department has not taken objection to availing of Modvat credit on the said items for the period prior and after to the period involved in the present appeal. These tubes, pipes and fittings are used by the respondents to connect various machines and equipments for the continuous maintenance of flow of liquid and chemical reactions desired at various places are completed. Shri Bagaria drew our attention to the following cases vide which Modvat c....

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....ication arose. Whereas the department was claiming the classification under Heading No. 68.50 the respondents claimed the classification under Heading 84.17. The said dispute is reported to be pending before the Commissioner (Appeals) of Customs. The respondents' contention is that classification, whether under Chapter 68 or Chapter 84 has got nothing to do with the admissibility of the Modvat credit on the said goods which were components/spare accessories, machines, machinery and plant etc. and were covered by the definition of capital goods under Rule 57Q. The respondents also relied upon Board's Circular No. 276/110/96-TRU, dated 2-12-1996 vide which it was clarified that parts components and accessories need not be covered under Chapte....