2003 (9) TMI 279

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....he Grinding Wheels in the trolleys, during the baking process in the ovens, an essential step in the manufacturing of the final product i.e. Grinding Wheels. 2. Credit was denied on the Hardened and Tempered Steel Strips and Aluminium Ingots by the Commissioner (Appeals) on the grounds : It will be seen that only goods described in Column No. 2 of the table and no other goods can be considered 'capital goods' for the purpose of this Rule, Prior to 16.3 "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....

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....apital goods, the credit was nevertheless allowable under Rule 57A by treating them as inputs, I find that the appellants have argued at length in the appeal that 'Hardened and Tempered Steel Strips' were capital goods within the meaning of Rule 57Q. In respect of Aluminium Ingots, it is admitted that the same were not capital goods and it has been argued that credit was allowable under Rule 57J of Central Excise Rules. Substantial benefits conferred by law should not be denied for curable procedural lapses. But on lapses being pointed out, the appellants ought to have filed revised declarations to enable the authorities to examine their eligibility to credit under Rule 57A. It is claimed that the 'Hardened and Tempered Steel Strips' are be....

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....2. Components, spares and accessories of S. No. 2, are covered by S. No. 5, while Moulds and Dies are again specified and covered under S. No. 6. Therefore accessories/components of Moulds are eligible capital goods. Since S. No. 5 covers components, accessories of the goods at S. Nos. 1 to 4 irrespective of classification in the Tariff, the findings of the Commissioner that Steel Strips and Aluminium Ingots are not specified Tariff, cannot be upheld. (b)     On examining the use, the entities are put to it is found - Hardened and Tempered Steel Strips are used as Die Liners after cutting to size and Aluminium Ingots have been used as capital goods components/accessories after converting to casts and used in relation ....