KATWA UDYOG LTD., BELGAUM Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) This appeal arises out of and is directed against order in appeal no. 736/98 -CE dt. 8.10.98, passed by the Commissioner of Customs and Central Excise (Appeals), Bangalore.

(2.) The short point to be considered in the instant case is whether cables and barbed wires used in weighing bridge is admissible to modvat credit under Rule 57Q. It was the contention of the party that cables also should be admissible to modvat credit. In support of his contention, he referred to the decision of the Tribunal in the case of Commissioner of Central Excise, Chandigarh Vs. Chenab Textiles Mills reported in 1999 (114) ELT 717 (Tribunal). In that case it was held that PVC, armoured conductors, aluminium cables, insulated sheathed/unsheathed cables and wires, enamelled winding wire of copper are entitled for modvat credit under Rule 57Q of Central Excise Rules, 1944. While deciding the issue, the Tribunal has followed the earlier decision of the Tribunal in the case of Jawahar Mills Ltd Vs. Commissioner reported in 1999 (108) ELT 47 (T).

(3.) Smt. Radha, appearing for revenue, tried to distinguish Jawahar Mills Ltd on the ground that the cables in that case was used in machinery but in the instant case cables was used in weigh bridge, as spare part/accessories and not eligible for availment of modvat credit in terms of clause (c) of the Rule 57Q1 of the Central Excise Rules. I am not convinced with the argument advanced on behalf of the revenue. Since the issue is well covered in the decision of the Tribunal in the case of Jawahar Mills Ltd and the view taken by the Tribunal was upheld by the Apex Court, I accept the contention of the party and accordingly the appeal is allowed. (Pronounced and dictated in the open court.)