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2015 (2) TMI 1178 - HC - Central ExciseModvat credit - Rule 57A and 57B of Rules, 1944 - Welding electrodes - used for the maintenance and repair of machinery in the factory wherein the appellants are engaged in the manufacture of V.P. Sugar and Molasses - period involved is October' 1999 to March' 2000 and January' 2002 to March' 2002 - Held that:- under Rules 57A and 57B, there is no term within which 'Welding Electrodes', as such, may fall. Under Rule 57B(1)(iv), MODVAT credit has been allowed to 'inputs' used for manufacture of final products or for any other purpose within the factory of production. Similarly, Rule 57B(1)(vi) allowed MODVAT credit on accessories on final products cleared alongwith such final products, value of which is included in the assessable value of final products but appellant could not explain as to how 'Welding Electrodes' can be said to be used for manufacture of final products or accessories of final products, so as to bring within aforesaid provisions. Therefore, for the period of October' 1999 to March' 2000, 'Welding Electrodes' would not come within the category 'inputs' so as to qualify for MODVAT credit under Rule 57A read with Rule 57B of Rules, 1944. Since there is change in provisions, therefore, for the subsequent period, having examined the terms "capital goods" and "input" in the subsequent Rules and comparing with the Rules 57A, 57B and 57Q of earlier Rule, for the purpose of present case, we do not find any substantial difference which may help the appellant so as to include 'welding electrode' within either of the aforesaid terms for claiming MODVAT/CENVAT Credit on the use of "welding electrodes" in an industrial unit engaged in production of sugar and molasses. - Decided against the assessee
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