Customs, Excise and Gold Tribunal - Mumbai
Bajaj Auto Ltd. And Motor Industries Co. ... vs Commissioner Of Central Excise, Pune on 15 October, 2003
ORDER Gowri Shankar, Member (T)
1. The common question for consideration in these appeals is the eligibility to credit either under Rule 57A or 57Q of goods used in the manufacture of the final product.
2. The goods in appeal 318/98 (Bajaj Auto Ltd.) are lubricating oil and greases used to lubricate machinery in the appellant's factory used to make the final product. The goods under consideration in three appeals of VIP Inds. are hydraulic oil used in the injection moulding machine of the assessee. It is settled law in CCE v. Modi Rubber 2000 (119) ELT 197 mat such lubricants are inputs used in or in relation to the manufacture of the finished goods and hence the credit of the duty paid on such oil was under Rule 57A. The same position would hold good for hydraulic oil since without its use the machinery used by VIP Industries could not have been put to use to make the finished product.
3. The goods under consideration in appeal 754/98 (Motor Inds. Co. Ltd.) are checking and machinery gauges and in appeal 1014/99 by the Commissioner against (Calchem Inds. Ltd.) are wires and cables. It is not denied that these goods were necessary for the manufacture of the final product. Therefore by application of the ratio of the judgment of the Supreme Court in CCE v. Jawahar Mills Ltd. 2001 (132) ELT 3 the goods qualify for consideration as capital goods under Rule 57Q.
4. Appeals E/318, 754 & 1004 to 1006/98 allowed. Appeal 1014/99 dismissed.