COMMISSIONER OF C.EX., Vs. VIGNESHKUMAR SPINNING MILLS

JUDGEMENT

(1.) This is a Revenue appeal against Order -in -Appeal No.513/96 (CBE) dated 28.6.96 by which the Commissioner (Appeals) has granted modvat credit to an extent of Rs.10,22,788.72 and penalty of Rs.5000/ - has been dropped. He has held that machinery used for manufacture of cotton carded/combed are capital goods although the intermediate products are not specified under Rule 57Q of C.E. Rules. He has followed the ratio of his earlier orders in granting the benefit of modvat credit.

(2.) LD.DR Shri S.Arumugam submits that all earlier orders of the Commissioner, by which he had granted modvat credit holding the machinery as capital goods, have already been remanded by the Tribunal for de novo consideration. He cites the case of CCE Vs SINGARAVELAR SPINNING MILLS LTD reported in 2000 (115) ELT 112 wherein the Tribunal after reconsideration have remanded the case on the ground to reconsider as to whether carding/combing machine being a preparatory machine and as to whether they are eligible for modvat credit and the same is dependent on the marketability of cotton combed/carded prior to 21.10.94. The Tribunal has noted that proper evaluation of evidence on marketability of cotton combed/carded is required to be looked into. Similar appeals which came up were all remanded by the Tribunal. Therefore, Ld.DR seeks for similar order.

(3.) LD.Consultant Shri Hassanthan, appearing for respondent submits that Revenue has come in appeal only on the question of grant of modvat credit on weighing machine, textile machinery as stated in the appeal memo.