2004 (11) TMI 406

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...., SDR, for the Respondent. [Order (Oral)]. -  The appellants are manufacturers of cement. They had taken Modvat credits totalling to Rs. 8,31,138/- on components of capital goods, many of these falling under Heading No. 84.74 of the Schedule to the Central Excise Tariff Act and the rest falling under Heading No. 73.08 of the said Schedule. The credits were taken during Jan.-Mar., 98. Th....

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.... capital goods or components thereof falling under Heading No. 84.74 stood excluded from the category of eligible capital goods under Rule 57Q. It was with effect from 1-9-1996 that such exclusion was done away with by Notification No. 25/96-CE(NT), dated 31-8-1996. The question which arises for consideration in this context is whether Notification No. 25/96 had retrospective effect to cover the a....

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.... the Explanation ibid. 3. After examining the rival arguments, I find that, though Notification No. 25/96 was considered in the case of Bihar Caustic and Chemicals Ltd., the Bench had no occasion to examine the question whether the Notification was clarificatory or not. Tubes and pipes of iron and steel were specified for capital goods credit under Clause 1(g) of the Explanation to Rule 57....

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.... under Heading No. 84.74. The impugned order cannot be faulted in respect of these goods. However, the position is different with regard to "Calcinator Assembly" which was received in the factory prior to 23-7-1996. During the period, [i.e., period prior to the amendment of Rule 57Q by Notification No. 14/96-CE(NT)], all capital goods used for processing of goods one way or the other for the manuf....