2001 (12) TMI 736 - AT - Central Excise

Summary

Issues:
1. Eligibility of tubeless tyres for dumpers as capital goods under Rule 57Q.
2. Eligibility of welding electrodes and arc welding generator as capital goods under Rule 57Q.

Analysis:
1. The issue of tubeless tyres for dumpers was raised in the appeal. The appellant argued that tubeless tyres are parts of dumpers, which are used in the manufacturing process. Referring to a previous decision, it was established that dumpers are eligible capital goods under Rule 57Q. Following this precedent, it was held that tubeless tyres, being part of dumpers, are also eligible capital goods under the same rule.

2. Regarding welding electrodes and arc welding generator, the appellant cited a Supreme Court case and various Tribunal decisions to support their eligibility as capital goods. The Departmental Representative argued that the usage of these items was crucial and referred to specific cases. The Tribunal found that the denial of Modvat credit was not due to repair usage but rather because the items were not considered capital goods under Rule 57Q. Citing the Larger Bench's decision in the Jawahar Mills Ltd. case, it was established that these items qualified as capital goods under the definition of 'plant' and were eligible for Modvat credit. Upholding the Tribunal's decision, it was held that welding electrodes and arc welding generator are indeed eligible capital goods under Rule 57Q.

In conclusion, the appeal was disposed of with a decision in favor of the appellant on both issues, confirming the eligibility of tubeless tyres for dumpers and welding electrodes along with arc welding generator as capital goods under Rule 57Q of the Central Excise Rules.