ORDER
P.S. Bajaj
1. This appeal has been preferred by the appellant against the impugned order of the Commissioner (Appeals) dated 22.7.1999.
2. The issue involved in this appeal relates to the modvatability of the goods in dispute as detailed in the impugned order on which the appellants had claimed modvat credit, under rule 57-Q of he Rules. The Assistant Commissioner through the Order-in-original disallowed the modvat credit to the appellants on these goods and allowed credit only on the inputs covered under the declaration dated 20.7.94 under rule 57G of the Rules. The Commissioner (appeals) after observing that only some were eligible for modvat credit, and not all, sent back the matter to the Assistant Commissioner.
3. The question as to whether the disputed goods fall within the definition of ‘Capital good’ under rule 57-Q read with explanation-I appended thereto, or not, as submitted by both the sides requires re-determination in the light of the latest Larger Bench decision in the case of C.C.E., Indore Versus Surya Roshni Ltd., reported in 2001(42) RLT-817. In that case, ratio of law laid down in the Jawahar Mills Ltd., Versus CCE-1999(32)RLT-379, case, has also been considered. The larger Bench has taken the view that for the purposes of modvat credit, the goods must satisfy the conditions detailed in Explanation-I appended to rule 57Q of the Rules.
4. Therefore, the impugned ord of the Commissioner (appeals) is set aside. The matter is sent back to the adjudicating authority, to decide the same afresh in the light of the above referred decision of the Larger Bench and other relevant law on the point which may be cited by both the sides. He will decide the case after affording opportunity of hearing to the appellants. The appeal of the appellants accordingly stands allowed by way of remand.
PRONOUNCED AND DICTATED IN OPEN COURT.