Customs, Excise and Gold Tribunal - Tamil Nadu
Cce vs Steel Authority Of India on 27 January, 2005
ORDER V.K. Agrawal, Member (T)
1. This is an appeal filed by Revenue against Order-in-Appeal No. 430/97 dated 20.11.1997 by which the ld. Commissioner (Appeals) has allowed Modvat credit of the duty paid on capital goods under Rule 57Q of the Central Excise Rules, 1944.
2. We heard Shri A. Jayachandran, ld. DR for the revenue, and Shri N. Venkataraman, ld. Advocate for the respondents M/s. Steel Authority of India Ltd. It has been fairly mentioned by both ld. DR and ld. Advocate that almost all the capital goods involved in the present appeal are covered by the decision of the Supreme Court in the case of CCE, Coimbatore v. Jawahar Mills Ltd. and Tribunal's decision in their own case that is SAIL v. CCE vide Final Order No. 1230/2002 dated 7.11.2002.
3. We have considered the submissions of both the sides. The capital goods involved are industrial valves, refractory items, tubes and pipes, components of control pulpits, cable tray, steel trays and unmachined castings, industrial furnace equipments and parts and strip support rolls, power distribution board and electrical panels, equipments, mechanists and valve frame electrical generator parts, etc. The definition of the capital goods at the material time that is during February-March, 1995 covered within its ambit, the machine, machinery, plant, equipments and appliances which are used to produce or process any goods or to change any product in the manufacture of final goods. Following the decision of the Supreme Court in Jawahar Mills and the Tribunal's decision in the respondent's own case the Modvat credit is allowed to them in respect of all the items except electric fans as the same have not been used in the process of their final product namely iron and steel products. Regarding wires and cables it has not been disputed by the revenue that the same have been used to connect the various machines and therefore the Modvat credit on wires and cables is also available to the respondents. Regarding electric fans, ld. Advocate has mentioned that this is used as component for ventilation purpose. He has, however, not shown to us as to how these electric fans are used as components in ventilator system. As the use of the electric fans in the process of manufacture of finished goods has not been established. We deny the Modvat credit thereon.
4. Ld. DR pointed out that certain goods have been received by the units other than the units in whose name the duty paying documents have been issued. After amendment of Rule 57T vide Notification No. 7/99-CE dated 9.2.1999 the Modvat credit is not to be disallowed merely on the ground of certain procedural shortcomings in the duty paying documents. It has also been clarified by the Board vide Circular dated 23.2.1999 that Modvat credit need not be disallowed on account of some shortcomings in the duty paying documents. If the Assistant Commissioner/Deputy Commissioner is satisfied that the capital goods have been received in the factory, they have suffered duty and they are being used or intended to be used in the manufacture of finished goods. As Revenue has not contended that the goods have not been used in the manufacture of final product the Modvat credit is not disallowable on this count.
5. The appeal is disposed of in the above terms.
(Dictated and pronounced in open Court).