1997 (11) TMI 274

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..... e appeal the Commissioner has disallowed the credit on the ground that the goods are not capital goods as defined in the Explanation to Rule 57Q. 2. We have heard both sides. The departmental representative adopts the reasoning in the order. We shall discuss each of the items separately. Electrical wires and cables : The Commissioner, has disallowed the credit on these goods for the following reasons. Looking to the nature of capital goods received I find that the electrical wires and cables which are used for connecting the supply from one place to another place do not fall within the purview of the capital goods, because the measurements of such electric wires and cables depend upon the distance of the electricity connecting boards t .....

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..... the factory are capital goods. In any event, the cables would have to be considered as parts of the plant and eligible for credit on this account also. Ceramic bricks : The Commissioner has disallowed credit on the ground that they are not machinery, plant, equipment, tools or appliances. He also relies upon the fact that by the amendment made to Rule 57Q on 16-3-1995 by Notification 11/95 ceramic refractories were included in the definition of capital goods in the Rules. Therefore he says, they could not be considered to be capital goods prior to this. 3. The appellant relies upon the decision of this Tribunal in J.K. Synthetics v. CCE - 1996 (88) E.L.T. 785, to say that the amendments made to Rule 57Q in Notification 14/96, is clarifi .....

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..... hence is not capital goods. In CCE v. M.M. Forgings - 1997 (89) E.L.T. 617 the Tribunal held that fork lift trucks which are used for transporting raw materials and products or components are capital goods because without them raw-material could not be transported to the place wherever required for processing and, therefore, that use was essential. The same reasoning would apply to the racks. The Commissioner has noted that the contention of the assessee before him that the G racks are used to shift transport glass one its form such as to the second stage of products, i.e. they used to transport the glass in an intermediate stage or in semi-finished condition. In his discussion he accepts the contention that they [are] used for shifting th .....

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