MARIS SPINNERS LTD. Vs. CCE

JUDGEMENT

(1.) This appeal filed by the M/s Maris Spinners Ltd. the appellants herein is directed against Order -in -Appeal No. 329/2003 (SCN) -TRY -II dated 29.7.2003 passed by the Commissioner of Central Excise (Appeals) Trichy, by which the Commissioner has held that the goods viz. Lighting Fittings and parts thereof, falling under heading 94.05 of CETA, 1985 is not eligible to Modvat Credit.

(2.) The brief facts of the case are that the appellants herein are engaged in the manufacture of Cotton Yarn falling under heading No. 52.05 of the CETA, 1985. They have availed Modvat Credit on the goods 'Lighting Fittings and parts thereof falling under heading No. 94.05 to the extent of Rs. 47,994 under Rule 57Q of the CE Rules, 1944. They have filed necessary declaration under Rule 57T on 23.2.96, The capital goods credit was sought to be disallowed on the ground that the goods are ineligible capital goods under Rule 57Q. The original authority allowed the credit holding inter alia that the goods were industrial in nature and hence eligible for credit. Aggrieved by the said order, the Revenue moved the Commissioner (Appeals) who under the impugned order held in favour of the Revenue. Aggrieved by the said order, the assessee -appellants have come in appeal.

(3.) Shri R. Masilamoney, learned Consultant for the appellants submitted that the goods involved are capital goods for industrial use having several pieces mounted with mirror optic and illumination system to cover the entire installed area of the machinery of the appellants and are eligible for the benefit of Modvat Credit under Rule 57Q. The goods were used inside the manufacturing hall and are not used in the office attached to the mills and the light fittings are quite essential for production of the goods and without such magnifying industrial lighting system, it would be very difficult to carry on the manufacture of the final products. He has also invited my attention to the judgment of the Hon'ble Apex Court in the case of JK Cotton Spg. and Wvg. Mills, 1997 (91) ELT 34 (SC).