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TMI Blog1997 (6) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... K.S. Venkataramani, Member (T)]. By the impugned order the Commissioner of Central Excise Customs, Vadodara has denied Capital Goods Modvat credit under Rule 57Q on the following goods for the reason that they are not used for producing or processing the dutiable final product : 1. Electric Cables. 2. Transformers. 3. Compressors. 4. Equipment for water treatment plant. 5. Black ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd machinery is eligible for Modvat credit under Rule 57Q. As regards air compressors the Commissioner has held that though they were included in the definition of capital goods from 16-3-1995, prior to that period it cannot be so considered. However, a similar stand by the Department in respect of electrical transformer did not find acceptance with the Tribunal in the case of Collector of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt plant is to produce such water which is for spin finish oil, which in turn used for producing yarn. The ratio of the Tribunal decision in the case of Commissioner of Central Excise, Coimbatore v. Shanmugaraj Spg. Mills - 1997 (89) E.L.T. 84 cited by the ld. DR becomes applicable. In that case the Tribunal held that the definition of Capital Goods under Rule 57Q is restrictive and capital goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been rightly denied. So also materials like glass insulating materials, electrical resistors and measuring instruments like [gauges], thermometers etc. would hardly satisfy the definition of capital goods under Rule 57Q and are hence ineligible for Modvat credit. 4. The pipes and fittings are used for flow of various media like air, steam and water within the plants in the factory. In the light ..... X X X X Extracts X X X X X X X X Extracts X X X X
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