TaxTMI 
TaxTMI 
2002 (3) TMI 789
X X X X Extracts X X X X
X X X X Extracts X X X X
....n this case the assessee Lakshmi Machine Work Unit II, Kaniyur, Coimbatore is carrying on the business of manufacturing textile machinery and parts falling under Chapter 84 of CETA. They are availing Modvat credit under Rule 57Q of the C.E. Rules for an amount of Rs. 6,18,539/- representing the value of Dimensional Universal Machine and Digital Height Gauge. The assessee claimed Modvat credit in terms of Rule 57Q. The Department felt as it noticed that these items do not qualify as capital goods as they do not fall under the purview of capital goods. The Department issued two show cause notices (1), dated 23-6-1995 and (2) dated 24-7-1995 which are extracted below : 1. Show Cause Notice dated 23-6-95 Whereas it appears that M/s. Laks....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ht Gauge amounting to Rs. 6,18,539/- should not be disallowed in accordance with Rule 57U of the C.E. Rules, 1944. M/s. Lakshmi Machine Works Ltd. Unit-II, Kaniyur should also produce at the time of showing cause all the evidences upon which they intend to rely in support of their defence. They should also indicate in their written reply explanation as to whether they wish to be heard in person before the case is adjudicated. If no cause is shown against the action proposed to be taken within 30 days of receipt of this notice of having shown cause if they fail to appear before the adjudicating authority when the case is posted for hearing, the case will be decided Ex parte. Sd/- Superintendent of Central Excise 2. Show Cause Notic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the evidences upon which they intend to rely in support of their defence. They should also indicate in their written reply explanation as to whether they wish to be heard in person before the case is adjudicated. If no cause is shown against the action proposed to be taken within 30 days of receipt of this notice of having shown cause if they fail to appear before the adjudicating authority when the case is posted for hearing, the case will be decided ex parte. Sd/- Superintendent of Central Excise 3. The assessee in their letters dated 17-7-1995 and 16-8-1995 state which has been referred to the order-in-original. On considering these matters the Assistant Commissioner being the adjudicating authority held that the assessee was no....