COMMISSIONER OF CENTRAL EXCISE Vs. INDIAN SEAMLESS STEELS

JUDGEMENT

(1.) These reference applications are filed at the instance of revenue on the ground that substantial question of law arises from the order of the Customs Excise and Gold (Control) Appellate Tribunal, West Regional Bench at Mumbai (Tribunal" for short) dated 13th February, 1998, requiring the following question of law to be referred for the considered opinion of this Court:"whether the material handling equipment, tubes and pipes etc. which were neither used in the manufacture of final product nor used for carrying out any process and bringing about change in the final product, will fall under the purview of Rule 57-Q of Central Excise Rules, 1944 for extending the capital goods credit -the Facts :

(2.) The question sought to be referred in both these applications is one and the same. A common judgment can dispose of both these applications. However, for the sake of convenience the facts are drawn from Central Excise application No. 5/1998.

(3.) The respondent-assessee availed credit on capital goods under rule 57-Q of the Central Excise Rules, 1944 ("rules" for short). Three show cause notices dated 6th April, 1995; 25th May, 1995 and 3rd November, 1995 respectively were issued to them alleging therein that credits available on certain capital goods amounting to Rs. 1,10,97,930. 73 were inadmissible as the subject goods were neither consumed in the manufacture of final product nor used for carrying out any process to bring about any change in the finished or final product.