NAVAKARNATAKA STEELS LIMITED Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE authorities below have disallowed the Modvat credit on H.R. plates cut into required sizes to manufacture Plate rings with circular hole which in turn are fitted at the end of the roller shaft as a supporting frame, on the ground that H.R. plates are not capital goods within the meaning of Rule 57Q.

(2.) ON hearing both sides, and on perusing the records, I am in agreement with the findings of Commissioner (Appeals) that H.R. plates which are in the nature of structural or building material and hence H.R. rings cannot be considered as capital goods so as to be entitled to Modvat credit under Rule 57Q of Central Excise Rules, 1944. However, I find substance in the appellants plea that their alternate claim for coverage of H.R. plates under Rule 57Q as input, on payment of duty, on H.R. rings requires to be accepted subject to verification and for this purpose, I remand the matter to the jurisdictional Asstt. Commissioner who shall examine the eligibility of the assessee's to Modvat credit on H.R. plates under Rule 57A subject to evidence of payment of duty on Plate Rings in which H.R. plates are used. The appeal is thus allowed by way of remand