9911796707
TMI Blog1997 (12) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... s indicated that in the month of April, 1995, the appellants took credit of Rs. 2,11,358.65 on capital goods claiming that they were used for the manufacture of bulk drugs and proprietary medicaments. They also utilised the said credit for the payment of duty on the final products. The department alleged that the items on which modvat credit as capital goods was taken were not machines, machinery, plants, equipments, apparatus, tools, appliances, components, spare parts and accessories used for producing or processing of the goods or for bringing about any change in any substance for the manufacture of final products as required under Rule 57Q of the Central Excise Rules, 1944. Accordingly, a show cause notice was issued to the appellants a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tem-wise are as under :- Appeal No. E/990/97-NB - Electric Cable/Power Cable : It is used for carrying current to various places which is further used in the process of manufacture of goods. This view is supported by the following decisions of this Tribunal :- (a) M/s. Kanoria Chemicals Industries Ltd. v. CCE [1997 (95) E.L.T. 301] (b) M/s. Jaypee Rewa Cements v. CCE [Final Order No. 823/97-NB - 1997 (96) E.L.T. 167 (Tribunal)]. 5. Shri Y.R. Kilanyia, learned JDR appearing for the Revenue submits that Electric Cable/Power Cable are the items of general use and are not specific to any plant and machinery; that they are using these items not only in plant and machinery but also they are using for general lighting purposes inside as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned JDR submits that these are general utility items and that nothing has been brought on record to show as to how they were specifically designed so as to make them technically compatible for use in the manufacture of goods. He, therefore, submits that Modvat credit will not be admissible on these items. 12. I have heard the submissions of both sides. I find that capital goods have been defined in Explanation (1)(a) to Rule 57Q as machines, 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 products. I find that S.S. Table Top and Petridish Stand are neither machines nor machinery nor items given in E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inders are connected directly to the pipeline fitted to the plant; that they are used basically for producing or processing of goods, therefore they are part of the plant. In support of this contention, the learned Counsel cites and relies upon the decision of the Hon ble Bombay High Court in the case of CIT v. Electro Metallurgical Works Ltd. [1994 (207) ITR 494]. 16. The learned JDR submits that cylinders are general utility items and can be used anywhere, they are not subjected to plant and machinery required in the manufacture of bulk drugs. He, therefore, submits that they cannot be treated as capital goods under Rule 57Q. 17. After hearing the submissions of both sides after examining the use of the cylinders in the process of man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods under Rule 57Q. 25. As regards Electric Cables, I have already held that Electric Cables are used inside the factory premises and they are capital goods for the purpose of Rule 57Q. 26. Appeal No. E/992/97-NB - PTFE Hose and Flexible PTFE Line pipe fitting - the learned Advocate submits that basically these are used to transfer corrosive, hazardous materials like HCL, Sodium Hydroxide inside the plant. 27. Looking to the use of the items, I hold that they are part of the plant and can be termed as capital goods under Rule 57Q. 28. Fire Extinguisher - the learned Counsel submits that these are installed for safety of the plant and other equipments. 29. After hearing the submissions, I find that this item cannot be considered as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E.L.T. 276], this Tribunal held that Gantry crane and trolley used for transfer of raw materials for sawing integrally connected with process of manufacture. Following the ratio of the above decision cited and relied upon by the learned Advocate, I hold that they are parts of trolley, therefore, they are also capital goods for the purpose of Rule 57Q. 35. Rupture disc - the learned Counsel submits that this item falling under Chapter heading 84.85 is specifically covered by clause in Rule 57Q. 36. I agree with this contention of the learned Counsel and hold that this item will be eligible for Modvat credit under Rule 57Q. 37. I have given my findings item-wise and appeal-wise above. The impugned order is, therefore, modified to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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