TaxTMI 
TaxTMI 
2002 (1) TMI 80
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.....Counsel for the parties have referred to the facts in G.C.R. No. 14 of 1999. These may be briefly noticed. 3.The respondent is engaged in the manufacture of paper. It uses Wire Mesh and Felt and claimed Modvat credit. The Assessing Authority disallowed the claim of the respondent on the ground that Wire Mesh and Felt were not inputs in the manufacture of paper. The Collector (Appeals) reversed the order. The department filed an appeal before the Tribunal. The claim of the Revenue was not accepted. Hence a petition for reference was filed. The Tribunal has referred the following question for the opinion of this court : "Whether the Appellate Tribunal after having found that wire and felt are parts of machinery used in relation to the ....
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....ished excisable goods (hereinafter referred to as the "final products"), as the Central Government may, by notification in the official gazette specify in this behalf, for the purpose of allowing credit of any duty of excise or the additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975), as may be specified in the said notification (hereinafter referred to as the "specified duty") paid on the goods used in or in relation to the manufacture of the said final products whether directly or indirectly and whether contained in the final product or not (hereinafter referred to as the "inputs") and for utilising the credit so allowed towards payment of duty of excise leviable on the final products, whether under the Act or unde....
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....; packaging materials in respect of which any exemption to the extent of the duty of excise payable on the value of the packaging materials is being availed of for packaging any final products, (iii) packaging materials or containers, the cost of which is not included in the assessable value of the final products under Section 4 of the Act; and (iv) crates and glass bottles used for aerated waters." ** ** ** ** ** ** ** ** ** ** ** ** ** ** 8.Another provision which deserves notice is contained in Rule 57Q which, inter alia, provides as under :- "RULE 57Q. Applicability.- (1) The provisions of this section shall apply to finished exci....
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....nbsp; machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products; (b) components, spare parts and accessories of the aforesaid machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose; and (c) moulds and dies, generating sets and weigh-bridges used in the factory of the manufacturer. ** ** ** ** ** ** ** ** ** ** ** ** ** ** 9.A perusal of Rule 57A would show that the manufacturer of excisable goods is entitled to claim Modvat credit in respect of the "goods use....
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...., if these are excluded from inputs by virtue of the Explanation and are included in the category of machines, etc., then the Modvat credit shall be admissible under Rule 57Q. In the ultimate analysis, the credit is admissible. Resultantly, it appears that the view taken by the Tribunal was a possible view. In the process, the Revenue has not suffered any loss. 14. Mr. Gumber submits that the assessee had treated the Wire Mesh and Felt as inputs. It had not claimed credit under Rule 57Q. 15. We find no merit in this contention. The assessee had claimed the benefit under Rule 57A and, therefore, it could not have claimed it under Rule 57Q. It was the Assessing Officer who had disallowed the claim as not covered under Rule 57A. If that ....