2001 (10) TMI 1152 - AT - Central Excise

Summary

Issues involved: Eligibility for modvat credit under Rule 57Q of duty paid on hot rolled steel plates used in constructing the foundation for day bins in a factory.

Summary:
The Appellate Tribunal CEGAT, Mumbai considered the eligibility for modvat credit under Rule 57Q of duty paid on hot rolled steel plates used in constructing the foundation for day bins in a factory. The Commissioner denied the credit on the grounds that the items became part of immovable property, disqualifying them as capital goods. Referring to a previous decision, the Tribunal found that the denial of credit based on the items becoming permanently attached to the earth was not justifiable. Therefore, the appeal was allowed, and the impugned order was set aside.