COMMISSIONER OF C. EX. Vs. AARTI STEELS LTD.

JUDGEMENT

(1.) THE Respondents made a request vide letter dated 25 -5 -1999 to decide the appeals on merits. Therefore, the appeals are being taken up in the absence of the Respondents.

(2.) IN the impugned order the Commissioner of Central Excise allowed the benefit of Modvat credit under Rule 57Q as capital goods on the following items:

(3.) LEARNED JDR appearing on behalf of the appellant submits that the Commissioner of Central Excise relied upon the decision of the Tribunal in the case of Grasim Cement v. Commissioner of Central Excise, Raipur, reported in 1997 (96) E.L.T. 354 (Tribunal) and Revenue had filed a Reference Application in the Tribunal for referring question of law to the High Court. He, further, submits that the goods in question do not qualify under the definition of capital goods as the goods in question had no direct role in the manufacturing process. He, further, submits that the goods in question were included in the definition of capital goods under the Notification No. 11/95 -C.E., dated 16 -3 -1995 and 14/96 -C.E. dated 23 -7 -1996. He submits that prior to issuance of these notifications the goods were not covered under the definition of as capital goods.