9911796707
TMI Blog1998 (3) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Excise Rules. In the enclosed application in prescribed form, it indicated that MDPT so assembled will fall under T.H. 8705. The application also stated that the duty liability will be on spare parts/tanks manufactured by the job-worker. 2. Question involved, therefore, in this appeal is whether the appellants are entitled to the benefit of Modvat credit of duty paid on capital goods namely chassis fitted with engines and spare parts used for assembling the goods MDPT which is utilised for manufacture of Bulk Explosives. 3. The Assistant Commissioner vide his letter/order dated 16-5-1995 did not allow benefit of credit on the said goods on the ground that these were not covered within the definition of capital goods under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Operation and Safety. 1. Automobile : The Chassis fitted with engine is purchased from Ashok Leyland. 2. Hydraulic Power Pack : The main function of Hydraulic Power Pack is to drive different equipments, e.g., Premix Product Pump, Water Lubrication Pump, Hose Reel Winder etc. The main components of the Power Pack are as follows :- - Hydraulic Pump - Hydraulic Tank - Hydraulic Motors - Direction Control Valve - Flow Control Valves - Relief Valves - Hydraulic Pipe Lines The Hydraulic Pump is driven by a Power take off unit, which in turn supplies Oil under Pressure through Flow and Direction Control Valves to various Hydraulic Motors driving different equipments. 3. Manufacturing and delivery equipments : Main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired depth of the borehole and is internally lubricated with water for ease of pumping. Product of the requisite quantity is pumped into the borehole to the required depth which becomes Bulk Explosives after 10 to 15 minutes. 5.4 Ld. Advocate has also produced Registration Certificate issued by Supdt. Hazaribagh recognising MDPT as a factory for producing bulk explosives. 6. Ld. JDR, Shri R.K. Roy reiterates the findings of the lower appellate authority holding that MDPT is essentially a vehicle taking the inputs from one place to another. It cannot be considered a factory or even a machine for producing or processing any goods. Registration Certificate, it is further argued, does not mean that it is a factory . 7. I have carefully ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng precincts thereof in which any excisable goods are manufactured. Premises means any house or a confined area i.e. which is not movable. In other words, the concept of a mobile factory is alien to the Central Excise Act, 1944 and from that angle no Modvat credit would be available at all to the goods as mentioned in para 7 above. 9. There is yet another angle from which the problem can be examined but neither the appellant nor the department has examined the same. It is apparent from the facts that the assembled MDPT has not discharged duty liability under Tariff Heading 87.05 on its full value. The fact that MDPT itself is an excisable commodity has not been denied by the appellants themselves when they have stated in their applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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