Union Of India (Uoi) vs Hindustan Zinc Ltd. on 8 January, 2002
4. We find that Honble Rajasthan High Court in the case of Union of India vs. Hindustan Zinc Ltd. (Surpa) held that M.S. plates used for repair and maintenance of machinery are necessary for running of plant and up-keeping of machinery directly involved in the manufacturing of products and are entitled for credit. In the present case, the credit was denied on the ground that the items, in question, are in the nature of raw material of components/parts of the capital goods and there is no provision under Rule 57Q to grant credit on such raw material or components. We find, as per the definition of capital goods, the spares, accessories and components of the specified goods are also entitled for credits. In the present case, appellant have to show that items, in question, are used as components, spares and accessories of the specified goods. In these circumstances, we find the matter requires reconsideration. The impugned order is set aside and the matter is remanded back to the Adjudicating Authority to decide afresh after affording an opportunity to the appellant. The appellants are directed to produce evidence in this regard to the Adjudicating Authority. The appeal is disposed of by way of remand.