2002 (12) TMI 182

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....Order-in-Appeal, which reads as under : - "8. I have examined the position. Gasket set is a general purpose item capable of multifarious uses. It is not regarded in the commercial trade parlance as part of DG set. Hence, it cannot be considered as spare, component or accessory to the DG set. Goods falling under Ch. Heading 4016.99 are not eligible to the Modvat credit under Rule 57Q in terms of Notification No. 14/96-C.E. (NT), dated 23-7-96 as amended. Hence, Modvat credit on gasket set (4016.99) is not admissible. Similarly, goods falling under Heading No. 7308.90 and 8311 are not eligible to the Modvat credit as per the explanation under Rule 57Q of the Central Excise Rules, 1944 as introduced vide Notification No. 14/96-C.E. (NT), date....

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..... I find force in the argument of the appellant that even if gasket is found to be for multifarious use, the appellants have bought it for use in their DG sets and used it for the same. There is no material on record to exhibit that it is not so used. Therefore, Modvat credit on gasket sets used as components/parts of a DG sets would be eligible for credit. (c) The welding electrodes have been denied the credit under Rule 57Q on the grounds that the case of Jawahar Mills Ltd. [2001 (132) E.L.T. 3 (S.C.)] ipso facto would not apply to the eligibility of the Modvat credit on welding electrodes which has to be judged with reference to the definition under Rule 57Q. There is no material produced by the appellants to claim that welding electrod....