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2019 (3) TMI 1047 - HC - Central ExciseCenvat Credit / Modvata Credit - Conveyor - Excluded capital goods - Whether the CESTAT was justified in holding that though the Chapter Heading 8431 is excluded in Sr.No.2 of the Table to Rule 57 Q (1) of the Central Excise Rules, 1944, parts of Conveyer is covered under Sr.No.5 of the Table? - Circular No.276/110/96-TRU dated 02.12.1996. Held that:- The Tribunal should have referred to the Rule as prevailing and after the Circular was issued. Whether that Circular covers the goods under the amended Rule should have been clearly noted by the Tribunal. The Tribunal, for the purposes of upholding the availment, referred to goods such as conveyor classifiable under 8424 and if that is covered under Sr.No.2 and particularly, the non-excluded category, then, to that extent, the Tribunal may be right. However, when it was aware that the Table at Sr.No.2 clearly read as excluding goods falling under Heading 84.29 to 84.37, then, it should have also excluded the parts, accessories of these goods from the availment of Modvat Credit. We find that the reading of the Sr.No.5 by the Tribunal was improper and correct. The Circular would not enable the assessee in this case to avail of the credit. Though the Circular may say that the scope of this entry is not restricted to the components, spares and used under Chapters 82, 84, 85 or 90 but covers all components, spares and accessories of the specified goods irrespective of their classification, then, to that extent and without noticing the language of Table No.5, and only with the aid of this Circular, the Tribunal could not have allowed the assessee to avail the Modvat Credit. The ultimate conclusion of the Tribunal should not be entirely set aside. It is set aside only to the extent pertaining to the goods covered by chapter heading 8431 and its part (parts of conveyor) - Rest of the order of the Tribunal is upheld - appeal allowed in part.
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