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2013 (2) TMI 112 - AT - Central ExciseMODVAT Credit on inputs - Solvent 1425 lies in Chapter sub-heading 2710.11 or 2710.14 - disallowance of Credit under Rule 57I(1) and penalty under Rule 173Q(bb) - Held that:- This issue is no more res integra as settled in Sarvesh Refractories case (2007 (11) TMI 23 - SUPREME COURT OF INDIA) wherein held that the classification of the capital goods by the manufacturer-supplier cannot be changed in the hands of the user-manufacturer. In the present case, as the input was classified under Chapter sub-heading 2710.11, the same cannot be changed to 2710.14, as claimed by the Appellant. The judgement of this Tribunal in Balkrishna Industries case 2013 (1) TMI 324 - CESTAT, NEW DELHI) is inapplicable to the facts of the present case, in view of the fact that there has been change in the definition of input as was in existence in 1997 and now in the provisions of CENVAT Credit Rules, 2002/2004. In the changed definition of input under the CENVAT Credit Rules, 2002/2004, Motor Spirit commonly known as petrol, was excluded from the scope of input, whereas in the definition of input during the relevant period, the goods classified under Chapter Sub-Heading 2710.11 had been excluded from the scope of input. Therefore, Solvent 1425 even if considered as not Motor Spirit and allowed CENVAT Credit to be availed on the same under the CENVAT Credit Rules, 2002/2004, the same cannot be made applicable for the period in dispute, i.e.January to October, 1997, when all goods falling under Chapter Sub-Heading 2710.11 were specifically excluded from the scope of MODVAT Credit - no merit in the arguments of the Appellant - in favour of revenue.
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