1999 (8) TMI 425 - AT - Central Excise

Summary

Issues:
Appeal against Order-in-Appeal allowing certain items as capital goods under Rule 57Q.

Analysis:
1. Cables: The Tribunal referred to a previous decision by the Larger Bench and concluded that cables used to connect lighting systems integral to plant operations are eligible for Modvat credit under Rule 57Q as settled law.

2. Auto Rectifier Transformer and Transductor: The Tribunal examined the capacity of the transformer based on evidence provided and determined that it falls within the ambit of Clause 1(d)(vi) of the Explanation to Rule 57Q. It also noted that rectifiers and transductors are integral parts of transformers essential for the manufacturing process.

3. Terminal Boards: Terminal boards were considered integral parts of electric motors necessary for handling raw materials and intermediate products in the manufacturing process, making them eligible for Modvat credit under Rule 57Q.

4. Charger with Amplifier: The Tribunal found that the safety system connected to a battery bank for monitoring electrolytic cells in the manufacturing process of caustic soda is essential and eligible for Modvat credit under Rule 57Q.

5. Annunciator Cards: The Tribunal relied on a previous decision to determine that annunciator cards triggering alarms in the manufacturing process are eligible for Modvat credit under Rule 57Q.

6. Bearings: Citing a previous decision, the Tribunal held that bearings used as mechanical spares in machines for handling raw materials and intermediate products are eligible for Modvat credit under Rule 57Q.

Based on the detailed analysis for each issue, the Tribunal concluded that all six items in question were eligible for Modvat credit under Rule 57Q. The appeal against the Order-in-Appeal was rejected as the Tribunal found no merit in the Revenue's arguments, upholding the decision allowing the items as capital goods.