9911796707
TMI Blog1997 (12) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances of the case, the cement and steel structurals used in the fabrication of the blast furnace itself is 'capital goods' as defined in Rule 57Q of the Central Excise Rules, 1944. B. Whether cement and steel structurals which are used in the erection of, and part of the blast furnace which is a "plant" in itself would constitute "capital goods" meaning of Rule 57Q of the Central Excise Rules, 1944 and would therefore, be eligible to Modvat credit. C. Whether the term "plant'' as understood in the trade does not include the entire factory premises, building etc. where the manufacturing of any goods was carried on. D. Whether due to the peculiar nature of the blast furnace and the manufacturing process carried on in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court decision in J.K. Cotton Spinning and Weaving Mills Co. Limited v. The Sales Tax Officer, Kanpur - 1997 (91) E.L.T. 34 (S.C.) = AIR 1965 SC 1310, the Tribunal had observed that Rule 57Q provided that capital goods meant "machine, machinery, plant, equipment apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product." The appellants' argument is that cement and steel structure being part of the blast furnace which is a plant in itself is not covered by the decision of the Hon'ble Supreme Court in the case of J.K. Cotton Spinning and Weaving Mills Co., supra. 3. The present applicants have submitted that the term "plant" as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any goods or for bringing out any change in any substance in the manufacture of the final product". The question presently raised is whether cement and steel structurals used for erecting blast furnace in the factory of the applicant for producing pig iron can come within the meaning of 'capital goods' under Rule 57Q. There can be no dispute about blast furnace as such being considered a machine/machinery used for producing or processing of the goods. However, it is a different matter to suggest that material used for erecting blast furnace will also qualify to be considered capital goods. The process by which blast furnace is erected is a process anterior to the coming into existence of the blast furnace used for producing or processin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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