COMMISSIONER OF C. EX. Vs. INDIA CEMENTS LTD.

JUDGEMENT

(1.) THE lower appellate authority allowed capital goods credit of Rs. 3,42,118/ - to the assessee in respect of M.S. Plates which were used by them for repairs and maintenance of cement producing machineries. Some of these plates were received in their factory prior to 1 -4 -2000 and the rest received after that date. It was on 1 -4 -2000 that Rule 57A (relating to input -duty credit) and Rule 57Q (relating to capital goods credit) were replaced by Rule 57AB. Rule 57AA of the new Cenvat Rules defined "capital goods". The relevant part of this definition is extracted hereunder : -

(2.) AFTER hearing both sides and considering their submissions, I find that it was held by coordinate benches of the Tribunal in the cases of J.K. Cement Works v. Commissioner and Rosa Sugar Works v. Commissioner that plates used for repairing worn -out/damaged parts of machinery were eligible capital goods for Modvat credit under Rule 57Q ibid. Ld. SDR has relied on the following Larger Bench decisions of the Tribunal in support of her argument that anything used for repairs and maintenance of capital goods would not qualify for capital goods credit under Rule 57Q or under Rule 57AB : -

(3.) ONE of the grounds stated by the appellant is that the apex court has admitted a civil appeal filed by the department against the Tribunal's Order No. 896 -899/2002 NB dated 10 -6 -2002 vide 2002 (150) E.L.T. 675 (Tri. - Del.) allowing credit on SS Plates, Plain Plates and other Iron and Steel items used for repairs of machinery installed in a factory. The appellant has not claimed that the operation of the above order of the Tribunal has been stayed. The mere pendency of a civil appeal cannot be taken as having any impact on the precedent value of the Tribunal's decision which is the subject -matter of the appeal.