TaxTMI 
TaxTMI 
2006 (12) TMI 86
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....oods i.e. loader under Rule 57Q of the Rules, 1944 before Rule 57AA was introduced?" 3. The question framed at the time of admission on the basis of suggestions made by the Revenue is slightly off the mark of controversy raised in this petition as we shall presently see and needs to be re-framed. 4. The assessee has claimed to avail modvat credit on tyres, tubes and flaps received by him during the period 17.4.1999 to 23.7.1999 as spares / accessories of another capital goods namely loader used in the factory of the assessee in terms of Section 57Q of the Central Excise Rules, 1944. 5. The adjudicating authority had issued a show cause notice dated 24th April, 2001 stating that since the tyres, tubes and fla....
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....tal goods they are also eligible for modvat credit. 8. The aforesaid order of the Commissioner (Appeals) was subjected to appeal before the Tribunal. The Tribunal affirmed the order of the Commissioner (Appeal) vide order under appeal. 9. Apparently, the question that arises for consideration is not whether the tyres, tubes and flaps in question were ineligible for modvat credit because of their receipt in factory prior to the introduction of Rule 57AA in the Rules of 1944 as appears from the question framed above, but the real question is "whether in order to avail modvat credit on any capital goods used as spares or accessories of another capital goods which are eligible for modvat credit must also fall within the spec....
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....ering serial No.(v) itself redundant and otiose. The Tariff Act does not make distinction while prescribing rate for any item classified therein on the basis of end use of the product to which it is likely to be put. The Tariff Act primarily classifies end products to be subjected to Duty at a rate prescribed therein. This classification cannot by necessary implication be imported to operate while considering the specific exemptions, concessions or other exceptions provided on conditions specified in such notification. Such provision has to be construed in the light of scheme of provision concerned. In contrast to provision in Tariff Act providing classification of goods manufactured and Duty payable thereon, the scheme under which modvat /....
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....classification under the Tariff Act. The eligibility of modvat credit is of any article which has been subjected to levy of duty independently depends on its end use as components, spares and accessories of goods specified against serial No.(i) to (iv) above. 13. Sub-rule (7) of Rule 57Q is relevant for the purpose which reads as under:- "(7) The credit of the specified duty on capital goods [other than above capital goods covered under S.Nos.5, 7, 10, 11 and 12 of column (2) of the Table below sub-rule (1)] and received in the factory on or after the 1st day of January, 1996, shall not be taken on a date prior to the date on which such capital goods are installed or, as the case may be, used for manufacture....