COMMR. OF C. EX. Vs. VIJAYALAKSHMI MILLS LTD.

JUDGEMENT

(1.) IN this Revenue appeal, the brief facts are that respondents are manufacturers of Cotton Yarn, Synthetic Staple Fibre Yarn and Artificial Staple Fibre Yarn falling under chapters 52 to 55 to the Central Excise Tariff. They are availing the facility of Modvat credit on Capital Goods under Rule 57Q. The jurisdictional Range Officer issued a show cause notice proposing to deny credit of duty taken by the assessee, alleging contravention of Rules 57Q, 57R and 57T of the Central Excise Rules, 1944. The allegations given in the show cause notice are:

(2.) THE Assistant Commissioner of Central Excise, Coimbatore III Division considered the merits involved in respect of each issue referred to in the notice and vide order -in -original C. No. V/52/15/261/95, dated 22 -4 -1996, disallowed the credit to the extent of Rs. 1,49,617.00 under Rule 57U of Central Excise Rules. He, however, allowed credit of Rs. 75,540/ - as being eligible.

(3.) AGGRIEVED by the above order, the assessee filed an appeal with the Commissioner (Appeals), Trichy. The Commissioner (Appeals) vide Order -in -Appeal No, 105/97 (CBE) dated 18 -3 -1997 allowed the appeal filed by the assessee. The issues were decided as follows : -