Cce, Chandigarh Vs. M/S. Vardhman Spinning and Genl. - Court Judgment

Excerpt:

.....he also fairly concedes that the question whether transformer oil is an input eligible for modvat credit stands decided in favour of the assessees by decisions of the tribunal.he, therefore, prays for allowing the appeal in relation to the admissibility of hsd oil for inputs-credit.4. i have carefully considered the above submissions. i note that, as rightly submitted by ld. sdr, parliament has held hsd oil to be ineligible for inputs-credit under rule 57a as per section 112 of the finance act, 2000 with retrospective effect, covering the period of dispute involved in the present case. therefore, the order of the lower appellate authority to be set aside. however, the question of eligibility of transformer oil for such credit is one which has already been settled in favour by ld. sdr. therefore, the order of the commissioner (appeals) on the said question has to be upheld.

Judgment:

1. Modvat credit totalling to Rs. 1,20,078.51 taken by the respondents on various inputs namely, HSD oil, transformer oil, hydrogen peroxide, dyes and chemicals during the period of November, December, 1994 was disallowed by the Assistant Commissioner as per Order dated 31.10.97.

In the appeal filed by the aggrieved assessees against this order, the Commissioner (Appeals) held all the above inputs to be eligible for modvat credit under Rule 57A of the Central Excise Rules but disallowed the credit taken on hydrogen peroxide, dyes and chemicals on the ground that such credit had been taken on original invoices which were not admissible for availment of modvat credit. In the present appeal of the Revenue the appellants are aggrieved by the decision of the Commissioner (Appeals) relating to the modvat credit on HSD oil and transformer oil.

2. I have heard Ld. SDR Sh. M.D. Singh for the Revenue. There is no representation for the respondents in spite of notice of hearing.

3. Ld. SDR has supplemented the grounds of the appeal by raising a new legal ground. He submits that HSB oil stands ineligible for modvat credit under Rule 57A retrospectively, covering the period of the present dispute, by virtue of an amendment of the rule brought as per Section 112 of the Finance Act, 2000. He also fairly concedes that the question whether transformer oil is an input eligible for modvat credit stands decided in favour of the assessees by decisions of the Tribunal.

He, therefore, prays for allowing the appeal in relation to the admissibility of HSD oil for inputs-credit.

4. I have carefully considered the above submissions. I note that, as rightly submitted by Ld. SDR, Parliament has held HSD oil to be ineligible for inputs-credit under Rule 57A as per Section 112 of the Finance Act, 2000 with retrospective effect, covering the period of dispute involved in the present case. Therefore, the order of the lower appellate authority to be set aside. However, the question of eligibility of transformer oil for such credit is one which has already been settled in favour by Ld. SDR. Therefore, the order of the Commissioner (Appeals) on the said question has to be upheld.