2000 (6) TMI 221

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....dvocate, for the Respondents. [Order]. - This reference application is filed by the Collector of Central Excise with regard to the final order No.A/688 & S/268/98-NB (SM), dated 12-6-1998 of the Tribunal. The issue involved in the appeal was whether transformers were eligible to modvat credit under Rule 57Q of the Central Excise Rules as 'capital goods' prior to 16-3-1995. It was decided by ....

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....pping up and stepping down the voltage of electric current, it is not used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of the final product. Therefore, it was not eligible for credit. It has also been mentioned that Central Board of Excise & Customs had clarified vide F. No. 172/2/94-CX.4, dated 5-7-1994 that Modvat credit on trans....

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....ubstance of the goods by direct participation in the manufacturing stream. 3. In the light of the above submissions, the reference application urges that the following issue may be referred to the Hon'ble High Court of Rajasthan at Jaipur :- "Whether modvat credit under Rule 57Q can be allowed by the Tribunal on "Transformer" even prior to 16-3-1995, i.e. as on 3-3-1995, when the defini....

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....E.L.T. 563 (Tri.) = 1999 (35) RLT 273 (Tri.), 1997 (92) E.L.T. 276 (Tri.) and 1998 (97) E.L.T. 127 (Tri.). 5. I have considered the submissions made by both the sides. The issue involved has remained contentious for a long time and differing decisions have been rendered by various authorities including the Tribunal. This has been noted in the final order itself. I also find that recently i....