1999 (9) TMI 583

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....w recalled, it had been held that Modvat credit was not available to the following goods in view of Tribunal's decision in CCE v. Singaravelar Spinning Mills as in 1999 (105) E.L.T. 630 (T) = 1998 (28) RLT 872 (T) :- S. No. Descrioption of goods Usage 1. 3 Nos. of Ring Frame Spinning Frame 2. Twist change wheel, Ratchet Wheel Special part assembly, Spindle bottom parts assembly, Pneumacal filter box, lifting lever, lifting rod fork pin, gear wheel, MS Rails and Spindle tape Parts of Spinning Frame 3. Tropudur cables Electrical cables 4. Flat cleaning fillet & Aluminium duct. Parts of carding machines 3. Ld. Consultant submits that the issue considered in Singaravelar Spinning Mills (supra....

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....he carding/combing machines are of pre-preparatory nature and the Notification No. 60/94 dt. 21-10-1994 was only clarificatory. It removed the items cotton carded/combed to rectify a defect of treating this intermediate product as an end product under Rule 57Q. Thus the notification cured a mischief and so applying Heyden's Rule, it had to be held as clarificatory and applicable retrospectively. (c) the evidence led by department on marketability of cotton combed/carded in Singaravelar Spinning Mills (supra) had been challenged before us by several appellants and in the case of Best Cotton Mills (P) Ltd. [2000 (118) E.L.T. 768 (Tribunal)] vide Final Order No. 346/99, dt. 12-2-1999 the matter had been remanded. However, in view of ab....

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.... be factually ascertained as to whether these cables were used to supply electricity to carding/combing machines or to speed frames/Ring frames and other machineries not directly connected with production of cotton carded/combed. We do not find this evidence on record. Hence, this aspect needs to be remanded to the original authority for de novo consideration as follows. If the said cables are not used in direct conjunction with the carding/combing machines (as claimed by respondents) then the Modvat credit under Rule 57Q shall be available in view of the Tribunal's Larger Bench decision in the case of Jawahar Mills (supra). 10. With respect to item No. 3, these are clearly parts of carding machines. In the case of Commissioner v. B....