CCE Vs. SIV INDUSTRIES LTD.

JUDGEMENT

(1.) The Hon'ble High Court of Judicature at Madras by their order dated 4.1.2001 in Reference Case Petition No. 24 of 2000 have directed the Tribunal to draw a statement of case together with the records relevant for deciding the following question:

(2.) Revenue has filed a set of documents relevant for the purpose of deciding the question and in terms of the same, the following statement of facts is drawn up; STATEMENT OF FACTS

(3.) Revenue Initiated proceedings against the respondent assessee on the allegation that they have Irregularly availed modvat credit to the extent of Rs. 1,45,143.00 on a group of measuring equipments and the demands made in the show cause notice under Rule 57U of C.E. Rules, 1944 were confirmed by the Asst. Commissioner vide his Order -in -Original No. 195/95 dated 18.10.95, The AC had relied on the Single Member's judgment of CEGAT in the case of Tata engineering and Locomotive Co. Ltd. v. CCE, 1994 (70) ELT 75 (New Delhi -CEGAT) who held as follows: "In my opinion in the context of Notification and the intention behind it, measuring instruments and the material handling equipments could not be considered as one of the types mentioned in the exclusion clause for the simple reason that measuring instruments merely measure and do not cause any change in any substance and, therefore, such an equipment could not be said to produce or processing goods... The use of such items apparently falls in a category different from that of producer machinery or processing equipment etc. for processing or production or causing a change in substance. If there was no such distinction there would be hardly any need for using such phraseology and it would have been enough to name the excludible category of items...". The AC, therefore, rejected the contention of the assessee holding "that credit had been taken on measuring equipment in the instant case by an exceedingly Imaginative interpretation of the provisions of the statue, and begs for an Imposition of penalty to curb such imagination from running amuck in future" and passed the said Order -in -Original.