UNIVERSAL CABLES LTD. Vs. CCE, RAIPUR

JUDGEMENT

(1.) THE issue involved in this Appeal, filed by M/s. Universal Cables Ltd., is the eligibility of MODVAT credit in respect of the following goods:

(2.) THE learned Advocate submitted that normally, their final products cables are wound on wooden drums; that due to increasing shortage of wood and keeping in view safe transportation of cables, large size cables are generally being wound on M.S. Steel Drums which had been dispatched to the Customers; that the value of such drums is included in the value of their final product; that wooden drums have already been held to be inputs in their own case by the Tribunal vide Final Order No. 128/900 -B1 dated 30.7.1990; that even during the process of manufacture cables are wound on the drums and as such are eligible capital goods.

(3.) THE learned Advocate mentioned that "XEC Caps" are fixed at The end of high voltage cables to prevent the cables from moisture etc. and the cables fitted with these caps are despatched to the customers; that the value of these caps is included in the value of the cables; that the Adjudicating Authority has given his findings in the impugned Order with regard to cable jointing Kits which are used for jointing of lengths of cables; that C.J. Kits are used for making coupler jointing on special rubber cables in their factory and as such are used for the manufacture of cables and accordingly MODVAT credit is available to them. The learned Departmental Representative, on the other hand, reiterated the finding as contained in the impugned Order to the effect that C.J. Kits are used for jointing the cables at the time of their laying and not for joining them when wound on the drums before the clearance and as such, Modvat credit is not allowable.