AURO SPINNING MILLS, BADDI Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) The applicants had taken Modvat credit to the extent of Rs.49,938/ - on insulated cables and electric control panels as capital goods during April to June 95. Both the Lower authorities disallowed the credit so taken, holding that the items were not eligible capital goods under Rule 57Q of the Central Excise Rules. Hence the appeal before the Tribunal and the present application praying for pre -deposit and stay of recovery in respect of the above amount of duty.

(2.) I have heard both sides. Ld. Advocate Shri Balbir Singh submits that both the items involved were held to be eligible capital goods for Modvat credit by a 3 -Member Larger Bench of this Tribunal in the case of Jawahar Mills Pvt Ltd. Vs CCE [1998 (108) ELT 47] and that, in a subsequent case, a 5 -Member Larger Bench has approved the said decision in the case of Commissioner of Central Excise, Indore Vs Surya Roshni Ltd. [2001 (128) E.L.T 293]. Ld. JDR Shri Swatantra Kumar has not contested the advocate's submission that the Tribunal's decision in Jawahar Mills (supra) has received approval of the 5 -Member Larger Bench in Surya Roshni Ltd (supra). In the light of these submissions, I find that the present applicants have a strong prima facie case on the basis of the ratio of the aforecited decisions. Accordingly, I allow this application unconditionally and post the appeal for regular hearing to 16.05.2001.