Customs, Excise and Gold Tribunal - Delhi
Cce vs Jindal Steel And Power Ltd. on 20 December, 2004
Equivalent citations: 2005(183)ELT406(TRI-DEL)
ORDER P.S. Bajaj, Member (J)
1. In this appeal, the issue relates to the denial of modvat credit to the respondents on the capital goods manufactured from the duty paid inputs and thereafter used in the manufacture of the final product. The learned Commissioner (Appeals) has allowed the credit by referring to the provisions of Rule 57-D of the Rules, through impugned order.
2. The Revenue has sought to deny the credit on the ground that the inputs had been utilized in the manufacture of capital goods which were exempt from payment of duty but in our view, this ground is wholly mis-conceived and cannot be accepted, in view of the provisions of Rule 57-D which read as under :
"Rule 57-D Credit of duty not to be denied or varied on certain circumstances :
1) ........
2) Credit of specified duty shall not also be denied or varied in case any intermediate products have come into existence during the course of manufacture of final products or the inputs are used in the manufacture of capital goods as defined in Rule 57-Q and such intermediate products or capital goods are not chargeable to duty of excise."
3. There is no ambiguity in the language use in this rule and in our view, the learned Commissioner (Appeals) ha rightly followed the same. The capital goods had been utilized by the respondent in the manufacture of final product which are dutiable. Therefore, credit on the inputs captively used by the respondents in the manufacture of capital goods, is available to them as those capital goods had been utilized by them in the manufacture of dutiable goods. We dod not find an illegality in the impugned order and the same is upheld. The appeal of the Revenue is dismissed.