V.V.S. ALLOYS LIMITED Vs. CCE

JUDGEMENT

(1.) THE appellant filed this appeal against denial of modvat credit on transformer of 33 KVA and accessories. Both the authorities below held that transformer of 33 KVA and accessories are not covered within the definition of capital goods in terms of Clause (d) of Explanation (1) of Sub -rule (1) of Rule 57Q of the erstwhile Central Excise Rules, 1944 as it stood during the relevant period.

(2.) LEARNED Counsel on behalf of the appellant submits that the Tribunal in the case of CCE, Indore v. L.G. Hotline CPT Limited reported in 2004 (176) ELT 443 (Tri. Del.) held that transformer of power handling capacity less than 75 KVA is capital goods within the definition given in explanation to Rule 57Q of erstwhile Central Excise Rules, 1944.

(3.) LEARNED DR on behalf of the Revenue reiterates the finding of the Commissioner (Appeals). He submits that the transformer was not used for the manufacture of final product. He submits that in this case transformer and accessories are additional parts of the transformer used to protect the transformer from over current and earth problem. Thus, the case law relied upon by the learned Counsel is not applicable herein.