COMMISSIONER OF CENTRAL EXCISE Vs. INDIA CEMENTS LTD

JUDGEMENT

(1.) THIS Civil Miscellaneous Appeal filed as against the order of the CESTAT was admitted by this Court on the following substantial question of law:

(2.) IT is seen from the facts narrated that the first respondent herein is manufacturer of cement falling under Chapter 25 of the Central Excise Tariff. The respondents purchased MS plates, MS Angles and channels and HR Sheets for fabrication of structurals to support various machines like crusher, kiln, hoppers, pre-heaters conveyor system etc. In respect of the above items, the assessee availed MODVAT Credit to the extent of Rs.82,49,052.00 covering the period upto September, 1998. The appellant, however, rejected the claim holding that the impugned items were classifiable under Chapters 72 and 73 and hence were not capital goods falling under Chapter 84. As they were not parts, components, spares or accessories, MODVAT credit was not available for the impugned goods. Inasmuch as these goods were not included in the table annexed to Rule 57 Q of the Central Excise Rules, 1944, the claim was rejected.

(3.) FOLLOWING the decision in a similarly placed assessee's case reported in 2002 (147) ELT 205 (Adarsh Industries Vs. CCE Mumbai VII); 2001 (44) RLT 529 (Madras Aluminium Corporation Ltd. Vs. CCE) and Order No.1588 of 2001 dated 1.8.2001 in the case of the very same assessee on MS Plates, the Tribunal upheld the contention of the assessee on MODVAT Credit, holding that the impugned goods are capital goods entitled to credit under Rule 57Q of the Central Excise Rules and thereby allowed the appeal. Aggrieved by this, the present appeal has been filed by the Revenue.