1997 (11) TMI 271

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..... case relates to denial of Modvat credit on electric wires and cables used for supply of electricity for causing necessary reaction in the manufacture of the final product of the appellants, namely aluminium. According to the department, electric wires and cables are not capital goods covered by the definition in the Explanation to Rule 57Q. 2. The learned Counsel Shri M.P. Devnath submits that .....

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..... efinition of capital goods includes only the main machinery or plant which is directly used in the manufacture of the final product and includes spare parts and accessories for such machinery or machines, but does not include items such as wires and cables which are not used in the machines or machinery which are the directly used for production or processing of goods but only used for supply of e .....

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..... goods within the meaning ascribed thereto in the Explanation to Rule 57Q. 4. I have carefully considered the submissions of both the sides. I find that the Tribunal in the cases cited by the learned Counsel has extended the benefit of Modvat credit by considering electric wires and cables used for supply of electricity to be capital goods covered by Rule 57Q. The argument that only those main m .....

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