TaxTMI 
TaxTMI 
2005 (6) TMI 51
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....des under Rule 57Q of the Central Excise Rules during the period October to December 1999. 4. The contention of the appellants is that they are engaged in the manufacture of sugar and due to constant use of the machines sometimes they are repaired in the factory. The welding electrodes are used in the repair of the capital goods. As such, they become component of the capital goods. Their contention is that as per the provisions of Rule 57Q, the component, spare and accessories of the specified goods are eligible for credit as capital goods. Their contention is also that the repair of the machines is directly concerned with or pertaining to the manufacture of the finished goods and accordingly, the welding electrodes have been used in or in....
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....tion of capital goods as provided under Rule 57Q of the Central Excise Rules. During the relevant period, the provisions of Rule 57Q of Central Excise Rules is reproduced below: RULE 57Q. Applicability. - (1) The provisions of this section shall apply to goods (hereafter in this section, referred to as the "final products") described in column (3) of the Table given below and to the goods (hereafter, in this section, referred to as "capital goods"), described in the corresponding entry in column (2) of the said Table, used in the factory of the manufacturer of final products. Sl. No. Description of capital goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and used in the factory of the manufacturer De....
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....ces and machinery); 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 and 85.40); 4. All goods falling under heading Nos. 90.11 to 90.13, 90.16, 90.17, 90.22 (other than for medical use), 90.24 to 90.31 and 90.32 (other than of a kind used for refrigeration and air-conditioning appliances and machinery); The appellants are not disputing the fact that welding electrodes are classifiable under Heading 83.11 of the Central Excise Tariff. As such, the welding electrodes are not covered under Serial Nos. 1 to 4 of the above Rule. The appellant claim is that these are used in the repair of machines, therefore, become components and these become co....