2001 (12) TMI 594

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....02. In the instant case since the capacity of generating sets is 35 KV, the appellant is not entitled to take credit. 3. None appeared on behalf of the respondents. However, it was submitted by them that the matter may be decided based upon the written submissions filed by them. It was submitted by them that according to the Department a more specific and positive description of the goods is enumerated in Rule 57Q(1)(d)(v) of Central Excise Rules but this aversion overlooks the fact that concurrent with this entry in the wording in Rule 57Q(1)(c) viz. 'moulds and dies, generating sets and weigh bridges used in the factory of the manufacturer' also stood without amendment. Further it was submitted that having purchased a generating set....

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....se, they are entitled to avail the credit. I am inclined to accept this contention of the appellants since an addition to the list of eligible goods should not have the effect of restricting the eligibility of an already existing item. Further, it is seen that by Notification 14/96-C.E. (N.T.), dated 23-7-96, explanation to capital goods was again amended, accordingly to which no restriction was imposed for credit on generating sets. Hence, it cannot be construed that there was some legislative intention to restrict the credit on generating sets of output not exceeding 75 KVA. Thus it is felt that justice would require that the benefit of Modvat credit should be extended to the appellant in terms of Clause (1)(c) of Explanation to Rule 57Q(....