2004 (2) TMI 619

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.... Shri H.C. Verma, DR, for the Respondent. [Order]. -  The appellants are manufacturers of VP Sugar and molasses. During the period of dispute (August-September 1999), they took Modvat credit of Rs. 2541/- on Welding Electrodes which were used for repairs/maintenance of machinery. Further, Modvat credit of Rs. 50,357.83 was taken on Iron and Steel Plates which were used for replacement....

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....nes specified under Sl. Nos. 1 to 4 of the said Table. It is further submitted that the Tribunal's larger Bench had held welding electrodes to be eligible capital goods under Rule 57Q in the case of Jawahar Mills Ltd. v. CCE [1999 (108) E.L.T. 47] which was upheld by the Supreme Court. With regard to the credit taken on iron & steel plates, it is submitted that the Tribunal's decision in Rosa Suga....

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.... the decisions cited by the Counsel is applicable to the facts of the present case inasmuch as, in all the cited cases, the periods of dispute were prior to 1-3-97 (date on which Rule 57Q was drastically amended) whereas, in the instant case, the period is after that date. After 1-3-97, admissibility of Modvat credit under Rule 57Q was to be determined with reference to the Tariff classification o....

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....ee. The admissibility of credit under Rule 57Q for the period August-September, 1999 requires to be determined in terms of the Rule. Tariff Headings 83.11 and 72.08 did not figure among the Headings covering eligible capital goods specified under the Rule and, therefore, the welding electrodes and MS Plates cannot be considered to be eligible capital goods under the Rule. The decisions cited befor....