TMI Blog1997 (6) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... it was beyond the limitation period of six months. Since the show cause notice itself was not tenable, consequently, the order of the adjudicating authority and the appellate authority confirming the demand was also not maintainable. 3. Briefly stated the facts relating to the appeal are : Appellants are manufacturers of Ethyl Alcohol, Acetic Acid, Acetic Anhydride and Acetaldehyde from molasses. Appellants had received steel tubes to be used in their distillation column which according to the appellants were essential machinery for the manufacture of the aforesaid chemicals. They had taken credit in their RG 23C Pt. II for steel tubes on 29-6-1994 which was verified by the Supdt. on the same day. The said credit was also utilised for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. and to show that the steel tubes in question were designed to be specifically fitted with the main plant and machinery. Since no such evidence had been furnished in the case the appeal lacked substance and therefore, the same had to be rejected. 4. The Representative of the appellants referred to Rule 57Q and the Explanation of `capital goods which included machines, `machinery , plant etc. He also referred to Chapter sub-heading 84.19 which included machinery for treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling etc. He submitted that a distillation unit is a machinery coming within 89.19 and within the definition of capital goods under Rule 57Q. In a distillation c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a separate reference to components, spares and accessories no such reference has been made about their classification. As such, the scope of the Explanation was not restricted only to components, spares and accessories falling under Chapters 82, 84, 85 90 but also covered components, spares and accessories of all the specified goods irrespective of their classification. The Circular further stated that the position would operate to the period prior to the amendment of Rule 57Q on 23-7-1996 when credit was available only on components, spares and accessories of the specified goods irrespective of their classification. According to the Representative of the appellants, the clarification given by the Board in the aforesaid Circular covered t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eel tubes were actually used in such machinery is a question of fact. The finding of the Collector (Appeals) that the onus was on the appellants to show that the tubes were actually used in setting up of the machinery or was part thereof as a component, does not appear to be tenable. It is not in dispute that the appellants had taken credit for the said steel tubes in their RG 23C Pt. II on 29-6-1994 which was verified by the Supdt. on the same day. If there was any doubt as to its subsequent utilisation or if there was any doubt as to the factual position, it was for the Department to verify the same by inspection of the factory or by calling for additional information. Having failed to do so, I do not find any justification for holding th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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