Supreme Court of India

COMMR. OF CENTRAL EXCISE, NEW DELHIversusLIFELONG APPLIANCES LTD.

Citation: 2006 INSC 148
Decided: 9 March 2006
Bench: AR LAKSHMANANDALVEER BHANDARI

Holding

The appellant had not taken MODVAT credit on inputs, so Rule 57-CC applies and the Tribunal’s order stands.

Summary

The Central Excise Tribunal held that Lifelong Appliances Ltd. had complied with the requirement of not availing MODVAT credit on inputs used in the manufacture of goods that are exempt from excise duty. Accordingly, the Tribunal found the case to be covered by Rule 57-CC of the Central Excise Rules, 1944 and the precedent set in Chandrapur Magnet Wires (P) Ltd. v. Collector of Central Excise, Nagpur. The appellant challenged this finding, arguing that the Tribunal’s order should be interfered with. The Court examined whether the appellant had taken any MODVAT credit and whether Rule 57-CC applied. Concluding that the appellant had indeed refrained from taking such credit, the Court upheld the Tribunal’s decision and dismissed the appeal.

Issues considered

Whether Lifelong Appliances Ltd. availed MODVAT credit on inputs used in manufacturing exempted goods.
Whether Rule 57-CC of the Central Excise Rules, 1944 applies to the appellant’s case.
Whether the Tribunal’s order can be set aside by the Court.

Legislation cited

Central Excise Rules, 1944s. Rule 57-CC

Subjects

MODVATCentral ExciseRule 57-CCExcise exemptionCredit availedTribunal orderAppeal

Judgment

              COMMR. OF CENTRAL EXCISE, NEW DELHI                                A
                                       v.
                       LIFELONG APPLIANCES LTD.

                              MARCH 9, 2006

        [DR. AR. LAKSHMANAN AND DALVEER BHANDARI, JJ.]                           B


        Central Excise Rules, 1944:

       s.57-CC-Manufacturer satisfYing requirement of not taking MOD VAT
 credit on inputs used in manufacturer of goods-Held, case covered by r.57-      C
 CC as well as Chandrapur Magnet Wires' case*.

     *Chandrapur Magnet Wires (P) Ltd. v. Collector of Central Excise,
Nagpur (1996) 81 ELT 3 SC, relied on.

        CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5660 of 2000.            D
    From the Final Order No. 626/00-8 dated 26.4.2000 of the CEGAT,
New Delhi in Appeal No. E-317 of 99-8.

     Harish Chandra, Ms. Shalini Kumar and P. Parmeswaran for the
Appellant.
                                                                                 E
        Alok Yadav and M.P. Devanath for the Respondent.

        The Order of the Court was delivered by

       Heard the learned senior counsel for the appellant and the learned
counsel for the respondent. We have perused the order impugned in this
appeal. The Tribunal as a matter of fact held that the appellant has satisfied   F
the requirement of not taking Modvat credit on the inputs used in the
manufacture of exempted goods and therefore their case is specifically covered
by Rule 57-CC as well as the decision in Chandrapur Magnet Wires (P) ltd.
v. Collector of C. Excise, Nagpur, reported in (1996) 81 ELT 3 SC with
regard to not availing Modvat credit on inputs. The impugned order, therefore,   G
is not liable to be interfered with at the instance of the Revenue. The appeal
fails and stands dismissed. No costs.

'R.P.                                                      Appeal dismissed.

                                      1157

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