TMI Blog2003 (8) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... of their capital goods is Fibrizer Rotor Assembly. This item was sent to a job worker for the purpose of repairs and, on completion of the job work, it was returned to the appellants by the job worker on payment of duty amounting to Rs. 88,400/- under Invoice No. 339, dated 13-10-98 issued under Rule 52A of the Central Excise Rules, 1944. The appellants took Modvat credit of this amount of duty un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s submits that the credit in question was taken strictly in terms of Rule 57Q. Undisputedly, it was taken on capital goods on the strength of Rule 52A invoice which evidenced payment of duty on the goods by the supplier thereof. The allegation in the show cause notice that the supplier had paid duty on labour charges only is not correct. Duty had been paid on the total value comprising the value o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sformers and Switchgears [1989 (43) E.L.T. 561 read with 1990 (47) E.L.T. 442]. In the cited case, which was also relied on by the adjudicating authority, it was held that replacement of transformer oil or change of minor parts would not amount to manufacture and, therefore, the assessee was not liable to pay duty. It was further held that no duty was payable on labour charges. No credit of any am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remises of job worker was cleared to the appellants on payment of appropriate duty (Rs. 88,400 at the rate of 13% on a total assessable value of Rs. 6,80,000/-). Such clearance was under invoice issued under Rule 52A by the job worker. A copy of this document is available on record and the same indicates that duty was paid not only on the labour charges but also on the value of the goods. The bene ..... X X X X Extracts X X X X X X X X Extracts X X X X
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