1997 (9) TMI 184 - AT - Central Excise

Summary

Issues Involved:
The issue involved in this case is the eligibility of Modvat credit on certain items claimed to be capital goods by the Appellant, which were challenged by the Department under Rule 57Q of the Central Excise Rules, 1944.

Fire Bricks and Refractories, Lining Plate/Liners:
The Tribunal held that Refractory material including Fire Bricks, Lining plate/Liners are eligible for Modvat credit as they are essential for the operation of the Kiln in cement manufacturing process, supported by relevant case law.

Hammer Plane Ring & Hammer for Clinker Breaker:
The items were considered as parts-cum-accessories of machine/plant and deemed eligible for Modvat credit based on their function in the cement manufacturing process and previous Tribunal decisions.

Conveyor Belt:
The Tribunal allowed Modvat credit on Conveyor Belt as it is an integral part of the plant and machinery used in the cement manufacturing process, in line with previous rulings.

Dust Collecting Bags/Filter Bags:
These items were deemed eligible for Modvat credit as they are essential for pollution control in the manufacturing process of cement, supported by a Supreme Court ruling.

Fibre Bulk:
The Tribunal found Fibre Bulk to be crucial for cooling down hot clinker in cement manufacturing, thus making it eligible for Modvat credit under Rule 57Q.

Mechanical Spares:
Various mechanical spares used in the cement manufacturing process were considered as capital goods eligible for Modvat credit, supported by Tribunal decisions and the explanation under Rule 57Q.

Electrical Machinery and Spares:
Items such as Control panel, Capacitor, Cables & Wire, Switch Gear, etc., were deemed capital goods eligible for Modvat credit as they are essential for the operation of machinery in cement manufacturing, supported by relevant case law.

Instrument Spare and Tools:
Tools and measuring instruments including cutting Nozzle, Multimeter, Jack, Thermocouple were considered capital goods eligible for Modvat credit based on their role in the manufacturing process and previous Tribunal decisions.

Oil Compression Ring, Screw, Dry Bearing & Gear Machinery:
These spares for machines in the Cement mill were found eligible for Modvat credit under Rule 57Q as they are used in the plant and machinery.

The impugned order was modified by the Tribunal to allow Modvat credit on the specified items, considering their essential role in the cement manufacturing process.