2017 (3) TMI 127

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.... and article of alloy steel falling under Chapter 7326 on the ground that goods of chapter 8424 and 8431 were excluded from the definition of the capital goods. The goods of 7326 does not fall under the definition of capital goods, therefore same is also not admissible. Being aggrieved by the impugned order, appellant is before us. 2. Ms. Anjali Hirawat, Ld. Counsel for the appellant submits that as regard the goods of chapter 8424 the only exclusion is provided in the definition of capital goods is in respect of fire extinguisher falling under chapter 8424.80 that means for all other items other than fire extinguisher even though falling under chapter 8424.80 credit is admissible. As regard the goods falling under CH 8431, she submits t....

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....pugned order. 4. We have carefully considered the submissions made by both sides and perused the records. 5. We find that substitution of old rules to the new rules for modvat scheme is by way of amendment and for that purpose the saving clause granted under Section 38A applies, therefore we do not agree with the Ld. Counsel that no saving clause is provided for substitution of modvat credit rules. As regard the admissibility of the capital goods, we find that goods namely fuel supply installation and accessories, spraying station and guns hoses though it is falling under chapter 8424.80 but exclusion was provided. The credit was taken during period July and August , 2000 the relevant provision of 57Q at the relevant time reads as und....

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.... 3. All goods falling under chapter 85 (other than those falling under heading Nos. 85.09 to 85.13, 85.16 to 85.31, 85.39, 85.40)   4. ................   5. Components, spares and accessories of the goods   From Sr. No. 2 of Table to Rule 57Q (1) it can be seen that as regard 8424.80 only fire extinguisher is excluded, therefore all goods other than fire extinguisher are included therefore credit is admissible on two items. As regard the credit on parts of conveyer, we find that part of conveyer are classifiable under 8431 and the conveyer is classifiable under 8428.00, the conveyor falling under Chapter 8428.00 is covered under Sr. No. 2 of the table. Though the chapter heading 8431 is excluded i....