9911796707
TMI Blog1997 (9) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... sp;machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products; (b) components, spare parts and accessories of the aforesaid machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose; and (c) moulds and dies, generating sets and weigh-bridges used in the factory of the manufacturer. (d) following goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and used in the factory of the manufacturer, - (i) all goods falling under Heading Nos. 84.02, 84.05, 84.06, 84.11, 84.12, 84.16, 84.17, 84.19, 84.21, 84.23, 84.25 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods under explanation to Rule 57Q, all goods falling under tariff Heading 85.02 in terms of explanation 1(b) are to be considered as capital goods for Modvat purposes. Tariff Heading 85.02 covers generating sets. The respondents are absent and have sought for decision on merits and the decision of the North Regional Bench 1996 (88) E.L.T. 785 in the case of J.K. Synthetics v. C.C.E., Jaipur has been brought to our notice, under which the Tribunal has held that the amendment of the explanation to Rule 57Q was clarificatory in nature and the benefit of Modvat credit has been allowed. In terms of this amendment of the definition, Modvat credit has been allowed in respect of number of items by reason of incorporation of the tariff heading, inst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited range of products of Heading 85.02 initially falling under Rule 57Q all the generating sets falling under this heading became eligible for Modvat credit. In this background Notification 14/96 could not be taken to be clarificatory in nature, so far as the question of availability of Modvat credit in respect of generating sets is concerned. The decision of the Tribunal cited supra therefore is distinguishable in the facts of this case. When the definition under Rule 57Q at the relevant time did not cover generating sets of 75 KVA and less, the question of allowing Modvat credit for generating sets of 25 KVA rating does not arise. In this view of the matter, we hold that the Revenue's appeal has to be allowed and we order accordingly. X X X X Extracts X X X X X X X X Extracts X X X X
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