AUTOMOTIVE AXLES LTD. Vs. CCE

JUDGEMENT

(1.) The issue relates to modvat credit. Modvat credit has been denied on the ground that the said parts are not new but reconditioned. It was submitted by the Counsel that the fact has not been disputed that the said parts after being reconditioned are parts of the production machinery and were cleared on payment of appropriate duty since the reconditioning amounts to manufacture. It was also submitted that the issue involved herein has already been considered by this Bench in the issue involved herein has already been considered by this Bench in the case of Motor Industries Co. Limited v. CCE, Bangalore reported in 2002 (105) ECR 220. In that case, it was held that parts used for reconditioning of a machine received back after reconditioning from job workers and such credit of duty on spare parts cannot be denied, following the ratio of the earlier decision of the Tribunal in the case of CCE v. NRC Limited reported in 2001 (46) RLT 609. Further, it was submitted by the Counsel that the very issue has been considered by the Commissioner (Appeals) in Order -in -Appeal No. 140/97 dated 30.7.1997, in the similar facts and circumstances, in the case of M/s. Ballarpur Industries Limited, Chemicals Division, and no appeal has been filed by the Department against that order.

(2.) Heard Shri L. Narasimha Murthy, JDR for Revenue.

(3.) I have squarely covered by the aforesaid decision. Following the same, I hold that modvat credit cannot be denied on the ground that the said parts are reconditioned. Accordingly, the appeal is allowed with consequential relief.