RATHI SUPER STEEL LTD. Vs. CCE

JUDGEMENT

(1.) The appeal itself can be disposed of after allowing the total waiver of the pre -deposit of the duty amount as the issue involved in the present appeal already stands covered in favour of the appellants by the ratio of the law laid down in the case of CCE, Raipur v. Raja Ram Maize Products 2000 (36) RLT 932. Therefore, I allow the total waiver of the pre -deposit of the duty amount of Rs. 6,693/ - and hear the appeal on merits also with the consent of both the sides.

(2.) The appellants are engaged in the manufacture of steel products. The only issue involved in the present appeal is, as to whether they are entitled to take modvat credit of the disputed amount on the copper wire which is being used by them for winding electric motors of the rolling mills. The learned Commissioner (Appeals) through the impugned order had disallowed the modvat credit on this item by observing that it is a general purpose item, but in the case of CCE, Raipur v. Raja Ram Maize Products supra, it has been observed that the modvat credit on the copper winding wires being part of the electric motor which is essential for running of the machines for production of goods, are eligible capital goods, are eligible capital goods for the purpose of modvat credit. In view of the ratio of the law laid down in this case, the impugned order of the Commissioner (Appeal) cannot be sustained and is set aside to the extent to which it has been challenged in this appeal by the appellants. The appellants are entitled to claim the modvat credit on the copper wires in question.

(3.) Consequently, the appeal of the appellants is accepted with consequential relief, if any, permissible under the law.