Per Jyoti Balasundaram :

The above appeals have been referred to this Larger Bench vide separate reference orders. In all the cases, the issue involved is eligibility or otherwise to the benefit of Modvat credit in terms of Rule 57Q of the Central Excise Rules.

2. The stand of the revenue is that the items in dispute namely welding electrodes, wires and cables etc. are not capital goods within the meaning of the explanation to Rule 57Q which covers goods used only in production, processing or bringing about any change in substance for manufacture of the final product and that the goods in question are not such goods. The Revenue is also of the view that the amendment in Rule 57Q which was made on 16.3.1995 is prospective and not retrospective in operation.

3. In the case of Jawahar Mills Ltd.[reported in 1998 (26) RLT 312 (T)], Modvat credit has been denied on power cables and capacitors; the period of dispute is March 1994 to October 1994. This case has been referred to the Larger Bench by Misc. Order No. 52/98, dated 27.1.1998 [1998 (100) ELT 41 (Tribunal)], in view of the conflicting views expressed in the Tribunal's order - Modvat credit had been extended on wires and cables