CENTURY PULP & PAPERS Vs. CCE, MEERUT

JUDGEMENT

(1.) THIS appeal has been filed by the appellants againt the order in appeal dated13.6.96 passed by the Commissioner (Appeals) disallowing modvat credit in respect of refractory products, industrial valves and other parts of recovery bilers, and items used in electrical installations like wires and cables.

(2.) THE appellants were engaged in the manufacture of writing and printing paper classifiable under Heading 48.02 of the CETA. They took modvat credit of the amount in question on the duty paid 'capital goods' received and used by them within their factory for producing/processing the final product in terms of declarations filed by them under Rule 57 -1 of the Central Excise Rules during the period April 1994 to November 1994. They were, however, issued various show cause notices for the recovery of the modvat amount on the ground that the goods in respect of which the modvat credit was taken did not fall within the ambit of 'capital goods' as defined in Explanation 1 appended to Rule 57 -Q of the Rules. After getting their reply to those show cause notices wherein they pleaded that the goods were 'capital goods' in respect of which they had taken the modvat credit for having paid the duty thereon and used the same in the manufacture of their final products, the Assistant Commissioner did not accept their version and disallowed the modvat credit of Rs.1, 14, 54, 551/ - on the ground that the same was availed on the goods which did not qualify the definition of 'capital goods'.

(3.) IN appeal this order of the Assistant Commissioner was modified by the Commissioner (Appeals) who allowed the modvat credit on certain more goods as detailed in his impugned order in appeal, in addition to the goods on which the Assistant Commissioner permitted the modvat credit.