COMMISSIONER OF CENTRAL EXCISE, JAIPUR versus M/S. RAJASTHAN SPINNING AND WEAVING MILLS LTD.

Citation: [2010] 8 S.C.R. 396 · Decided: 09-07-2010 · Supreme Court of India · Bench: D.K. JAIN · Disposal: Dismissed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

A 
B 
[2010] 8 S.C.R. 396 
COMMISSIONER OF CENTRAL EXCISE, JAIPUR 
v. 
MIS. RAJASTHAN SPINNING AND WEAVING MILLS LTD. 
(Civil Appeal No. 3760 of 2003 ) 
JULY 9, 2010 
[D.K. JAIN AND C.K. PRASAD, JJ.] 
Central Excise Rules, 1944: 
c 
Rule 570 - Steel plates and M. S. Channels used in the 
D 
fabrication of chimney for the diesel generating set - Fall 
within the purview of serial no.5 of the Table below Rule 570 
and thus entitled to modvat credit under the said rule - Central 
Excise Tariff Act, 1985 - Chapter 85. 
The question which arose for consideration in the 
present appeal was whether the tribunal was justified in 
holding that the assessee was entitled to avail Modvat 
Credit in respect of steel plates and M.S. channels used 
in the fabrication of chimney for the diesel generating set, 
E by treating these items as capital goods in terms of Rule 
57Q of the Central Excise Rules, 1944. 
Dismissing the appeal, the Court 
F 
HELD: The Tribunal was correct in holding that the 
assessee was entitled to avail of MODVAT credit in 
respect of steel plates and M.S. channels used in the 
fabrication of the chimney for the diesel generating set, 
Applying the "user test" to the facts in hand, the steel 
plates and M.S. Channels, used in the fabrication of the 
G chimney would fall within the ambit of "capital goods" as 
contemplated in Rule 57Q. It is not the case of the 
Revenue that both these items are not required to be 
used in the fabrication of the chimney, which is an 
H 
396 
c""6MMNR-.' OF-CENTRAL.: EXCisE; JAiPUR v.
1RAJASTHAN, 397 
SPINNING AND WEAVING MILLS LTD. 
I 
·~· 
.. 
f· 
- <' 
. 
., 
. : 
\ 
' 
,J 
' 
\ 
-
'Ii 
• 
' 
tt 
... 
' 
~. ~ ·-
/A 
integral part of the diesel generating set, particularly. when 
, 
• 
. 
'I 
,, 
-
~. 
} 
~ tv 
' • 
·' · 
: 
' •·' '' 
•, 
' ' 
the Pollution Control laws make .it mandatory that all 
.' , 
· · 
. 
., 
r 
~· 
' 
:_, 
.;-. 
,.S 
_. 
•"'v 
I· 
.•J 
plants which emit effluents should be so equipped with 
apparatus _which _can reduce· or get rid of the effluent 
gases. Therefore, any equipment used for.the said 
purpose was to be treated as an accessory in terms of 
serial,No~S of the goods described in cotumn'(2) of the 
Table below Rule 57Q, '[Paras ·13;-14)-[402-H;- '403-A-C] '• 
.-.'~;- . .'t 
~ 
~I~ 
_·, 
r"' 
:! ... 1 
'.~. j~ 
:·~L,i jl 
L 
··'}1-~_,,,.,...., !.'f f"I 
.1 
• Commissioner of central Exci$e, Coimbatore af?d-Ors.•.v. 
_:B 
Jawahar Mills Ltd. rand Ors.-(2001),6 SCC 274, reli~d~on. 
:'c 
' ' 
... · (2001)'
06 scc'274' .':: .. retie~ on·.1,,c;_, ·0 "' Pafa 6 
(.;,-
,.. \'. "j_;,, 
r 
.~·t 
• 
'• 
...,\.~ 
~{°L[.
1 ?1;(: 
~t_.2.?":'~~~ 9,A.f '.1 ·, 
..:;~'J{;:~ 
, - . CIVIL APPELLAT~' JURISDICTION~: Civil. Appeal No. '--D 
3760 of 2003, .. 
-. 
_. ":--,. -. e•;·.· 
y ... , _, i•J -,r .. -
' ,. 
_, 
, · 
~ 
r_J 
-t. - t1. 
~(. . .;'.":."..,. .. 1
' 
1·F.: ;:_ b~ 
;-'.~ 
~- - /;,,r 
-_ . From the Judgment .and Order dated 11.06.2002 of the 
:¢ustoms, Exci_se an_d Gold .(Control) App~llate ·,Tr_ibu_n_al, 
Northern Bench, l\lew Delhi in Final Order No. A/740/02-NB/ 
-
. . . . 
" 
--· .. - " -
. 
-- - - . -· - -- -- -
-,E 
~fy1] · ..... ·r: 
.. ··} ~r-· 
,,. 1P. ~~·)~· r.r e ."''.~ -:: 
~· r. 1.r •· \ 
. ,, 
~;,.. 
\' '"·~~ o.""-.: 
'· .·• ·_1,.,' 
""il: 
r 
,... 
• 
0 
C 
;.,l 
· . ..I 
.• , ...... ,: ,j, 
· 
-:., 
_ · 
Hansh Chandra, Anurag·GuJ)ta; Rama Ram, Bmu Tamta, 
... ,.. 
~ 
'" 
I 
I 
• 
\· 
,~ 
" 
"' 
T 
, 
°'t 
' 
\ 
"• 
r 
~ish~_~:sanc~a,ti an9cAni~ ~f~iy~r!or,th~ A,_pp~tl~nt: _ · L ~. n! 
1 B.L.• Narsimhan, Alok'Yadav and M.P. Devariath for the -F 
Respondent.·· ·· · - :· 
h <~~_--,·
1 .: •• ·c •. 
;-.,. • >·, 
,., 
... i 
4·Jnr· ~·' 
~-
~ 
1 
...... ··.,' .~ 
• 
· 
• .. 
• 
{i~1 ,.,b' 
~, 
The Judgment of the Court was d1elivered by 
I• . 
," 
,, 
,' 
·..,.]....,; 
: 
~· ,, ''.,'i•,·" 1j,(,·,~" 
T'11~:l~· 
., 
'\ ".1i' ~~ 
: r D.K, JAIN; J.1. Challenge in this appeal, by special leave, 
_is to the order dated 11th June, 2002 passed by the Customs, ~G 
Excise and Gold (Control)• App~llate _Tribunal ,(for short :'the 
Tribunal"), as it existed then, in Appeal No:E/725/2001-NB(SM). 
By the impugned, order,; the Tribunal has. held. that: the 
respondent (for short,"the assessee")· is :entitled• to: avail of 
MODVAT credit in respect of steel plates and M.S. channels 
H 
398 
SUPREME COURT REPORTS 
(2010] 8 S.C.R. 
A used in the fabrication of chimney for the diesel generating set, 
by treating these items as capital goods in terms of Rule 570 

Excerpt shown. Read the full judgment & AI analysis in Lexace.