DAYA SUGAR Vs. CCE

JUDGEMENT

(1.) THE appellant challenged the impugned order dated 30.9.2004 passed by the Commissioner(Appeals) in so far as disallowance of modvat credit on capital goods viz. welding electrodes.

(2.) THE brief facts of the case, are that the appellants are manufacturer of V.P. Sugar and molasses under chapter subheading 1701.31, 1701.39 and 1703.10 of the Central Excise Tariff Act, 1985. The appellant had been availing the modvat credit on capital goods under the erstwhile Rule 57Q of the Central Excise Rules, 1944. Show cause notices were issued on different dates proposing to disallow the modvat credit on various reasons. The adjudicating authority has allowed the modvat credit of Rs. 10,78,913,00 out of total duty of Rs. 10,83,898.00 and disallowed the credit of Rs. 4,985.00 taken during the period July, 1999 to May, 2000 under Rule 57U of the erstwhile Central Excise Rules, 1944 alongwith imposition of penalty of Rs. 1,000/ - under Rule 173Q(1)(bb) ibid.

(3.) REVENUE filed appeal before the Commissioner (Appeals) on the issue of eligibility of Modvat credit on welding electrodes, nut and bolts and M.S. structure, as capital goods. By the impugned order dated 30.9.2004, the Commissioner(Appeals) held that nut and bolts and M.S. structure are eligible capital goods but, welding electrodes are not capital goods being not the component/spare of the specified capital goods. Hence, the present appeal is filed by the appellant against the disallowance of modvat credit on welding electrodes. The learned Counsel Shri Alok Arora argued the matter at length. It has been submitted by the learned advocate that welding electrodes are eligible capital goods as held by the Hon'ble Tribunal in the following decisions: