CCE JAIPUR Vs. RATHI ALLOYS STEEL

JUDGEMENT

(1.) These appeals have been preferred by the Revenue against the common impugned order in appeal dated 13.7.99 of the Commissioner(Appeals) vide which he had reversed the order in original of the Assistant Commissioner in toto regarding the modvat claim of the respondents.

(2.) The respondents were engaged in the manufacture of iron and steel products falling under Chapter 72 of the Schedule to the CETA. They availed modvat credit in all of Rs.34,69,303.50 on the capital goods which had been detailed in the order in original of the Assistant Commissioner, during the period 1/95 to 5/96. They were issued four show cause notices dated 26.5.95, 14.9.95, 29.2.95 and 28.6.96 for the recovery of the modvat amount on the ground that they were not entitled to claim the same as the goods in respect of which the modvat credit was taken did not fall within the definition of 'capital goods' under Rule 57 -Q of the Central Excise Rules. They contested the correctness of those show cause notices but the Assistant Commissioner did not accept their version and allowed modvat credit only to the extent of Rs.25,19,438.67 and disallowed the credit of Rs.9,49,864.92 through the order in original. This order of the Assistant Commissioner was challenged by the respondents before the Commissioner(Appeals) who reversed the same in toto including the extent to which it was in favour of the respondents through the impugned order in appeal.

(3.) The Revenue has come up in appeal before us against the impugned order of the Commissioner(Appeals). Notice for today's hearing was sent to the respondents by the Registry on 7.2.2001, but none has come present on their behalf nor any request for adjournment has been received. Therefore, we proceed to decide the appeal after hearing the learned JDR.