2001 (12) TMI 745

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....rence coming on for hearing on this day, upon perusing the order of Reference of the Commissioner of Central Excise Trichy, the arguments of Mr. V.P. Gopalan, Additional Solicitor General assisted by Mr. V. Vaithialingam, Additional Central Government Standing Counsel on behalf of the Applicant and of Mrs. Pushya Seetharaman, Advocate for the Respondent, the Court made the following order : (Judgment of the Court was delivered by R. JAYASIMHA BABU, J.) The assessee purchased diesel engine, which it was found by the authorities, was for use as a part of the generating set, which set was used in the factory for generating the electricity required to run the machines. The diesel engine was received in the factory in January, 1995. The Modvat....

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....emption was granted from duty of excise to the goods used in such manufacture or process which is ordinarily carried on without the aid of power. 4. For the Revenue, it was submitted that prior to 16-3-1995, the explanation under the proviso to Rule 57Q consisted of only three sub-clauses viz. (a), (b) and (c) and that the diesel engine used for running a generator does not fall under any of those clauses. It was also submitted that the amendment carried out to that rule with effect from 16-3-1995 by which further clauses viz. clauses (d) and (e) were introduced cannot be looked into for the purpose of ascertaining the scope of Clauses (a), (b) and (c) of the Explanation as they stood prior to 16-3-1995. In Rule 57Q as amended in Clau....