DIAMOND CEMENT Vs. CCE, BHOPAL

JUDGEMENT

(1.) All the present appeals are posted for mention as the decision of the Larger Bench in the case of CCE, Indore vs Surya Roshni Ltd., 2001 (42) RLT 817 (CEGAT -LB), on the capital goods was awaited. That decision has been announced and reported. Both the sides agreed that all the appeals be heard today on merits. Therefore, we proceed to deal with the appeals on merits.

(2.) The issue involved in the present appeal relates to the availability of modvat credit on the disputed goods as detailed out in the order -in -original and the show cause notice. The respondents were engaged in the manufacture of Cement/Clinker falling under Chapter sub -heading No. 2502.29 of the Central Excise Tariff Act, 1985 (5 of 1986) and were availing the facility of Modvat under Rule 57 -Q of the Central Excise Rules, 1944.

(3.) It has been fairly conceded by both the sides that the issue as to whether the goods in dispute satisfy the definition of 'Capital Goods' under Rule 57 -Q read with Explanation -I of the Rules requires redetermination at the end of the adjudicating authority in view of the law laid down by the Larger Bench of this Tribunal in the case of CCE, Indore vs Surya Roshini Ltd., supra. Therefore, we accordingly set aside the impugned order of the Commissioner (Appeals) and sent back the matter to the adjudicating authority for fresh decision in the light of the law laid down by the Larger Bench of this Tribunal, referred to above, after affording a reasonable opportunity to both the sides to present their case. All the appeals of the appellants as well as Revenue are accordingly stand allowed by way of remand.