9911796707
TMI Blog2013 (12) TMI 1608X X X X Extracts X X X X X X X X Extracts X X X X ..... right in allowing modvat credit of duty paid on capital goods namely Draw frame producing final products namely Sliver/combed/carded cotton falling under Ch. 5202 are eligible capital goods, when this heading remained specifically excluded from the purview of capital goods under erstwhile Rule 57Q as it stood during the material time by overriding the legal provisions." 2. The assessee here ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods cotton carded/combed had remained specifically excluded in the list of eligible products appended to Rule 57Q. Aggrieved by the assessment, the assessee preferred appeal before the Commissioner, who rejected the appeal holding that notwithstanding the fact that the machinery was necessary in the manufacture of yarn, certain intermediate products were captively consumed in the manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed the said Order specifically covering the case like that, of the petitioner-assessee on the intermediate products, products, which were manufactured by using Cotton yarn. The Tribunal also referred to the circular issued by the Central Board of Excise & Customs in Circular No. 665/666/2002-CX, dated 25-9-2013 to the effect that Modvat credit could not be denied on capital goods used in inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Court in Bhor Industries Ltd. v. Collector, 1989 (40) E.L.T. 280 (S.C.), ultimately held that the assessee would be entitled to Modvat credit of duty paid on capital goods/spares, namely, carding and combing machines producing products namely sliver/combed/carded cotton falling under Chapter Heading 52.02 of the Schedule to the Central Excise Tariff Act, 1985, even when the Heading remained spe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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