Customs, Excise and Gold Tribunal - Delhi
C.C.E., Chandigarh vs M/S. Steel Strips Ltd. on 27 April, 2001
ORDER K.K. Bhatia, Member (T)
1. These are the Revenue Appeals filed against the Orders dt. 9.12.98 & 14.12.98 of the Commissioner (Appeals), Chandigarh. In these orders, the Commissioner (Appeals) has allowed the modvat credit amounting to Rs. 41,641.09 and Rs.41,080.30 respectively n certain capital goods viz., Oil & lubricants, H.R. Plates, Gloster Cables Wire, Iron angles, and Channels. I have heard Shri A.K. Jain, JDR for the appellants and Shri K.K. Anand, Advocate for the respondents. It is contended by the ld. JDR for the appellants that the issue relating to the modvat credit on capital goods is now finally settled by the decision of the Larger Bench of CEGAT in the case of C.C.E., Indor v.s Surya Roshni Ltd. reported in 2001 (128) ELT 293(T-LB). It is therefore pleaded that the matter will call for reconsideration in respect of each item under consideration in the light of guide-lines laid down in this decision of the tribunal Shri K.K. Anand, Advocate for the respondents does not dispute this proposition. He however, submits that with regard to the availability of the modvat credit on oil and lubricans, the matter stands fully covered in favour of the respondents by another decision of the Larger Bench of the CEGAT in the case of C.C.E., Meerut vs. M/s Modi Rubber Ltd. & Others and U.P. State Sugar Corpn. Ltd. & Others vs. CCE, Allahabad & Ors. reported in 2000 (38) RLT 718 (CEGAT-L.B). The ld. Advocate for the respondents further placed reliance on the judgment of the Hon'ble High Court of Madras in the case of SIV Industries Ltd. vs. CCE Coimbatore reported in 2001 (129) ELT 48 (Mad.).
2. I have considered the submissions made before me. As rightly submitted by both the sides, the guide-lines relating tot he availability of modvat credit on the capital goods under Rule 57Q of the Central Excise Rules, 1944 have been laid down in the aforestated decision of the Larger Bench of CEGAT in the case of M/s. Surya Roshni Ltd. referred to supra. The ratio of the judgment of the Hob'ble Madras High Court cited above is also binding for the consideration of availability of the modvat credit on the capital goods under Rule 57Q abid. In view of these facts therefore, since the modvat credit on the oil & lubricants is already held to be admissible to the assessee in the Large Bench decisions of the CEGAT in the case of Modi Rubber Ltd. & Ors. (supra), the appeals of the Revenue in respect of theses items is rejected. As regards the other items, the orders passed by the Commissioner (Appeals) are set aside sand the matter remanded to the Original Authority for passing a de-novo order on the availability of the modvat credit on the impugned items as capital goods under Rule 57Q in the light of the ratio of the decision of the Larger Bench of the CEGAT in the case of Surya Roshni Ltd., and the judgment of the Hon'ble Court of Madras in the case of SIV Indus. Ltd. The Original Authority shall afford a reasonable opportunity to the respondents for stating their case before passing the Final Order in the matter.
3. The appeals are thus partly allowed by way of remand in the above terms.
4. (Announced and dictated in the Court).