9911796707
TMI Blog1997 (7) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... for the manufacture of the final product, in terms of the explanation under sub-para 1(a) of Rule 57Q, under which the scope of the term capital goods for Modvat purposes has been defined. The lower appellate authority however, has held that the scope of the term capital goods as set out under Rule 57Q is wide enough that pipe can be taken to be covered within the ambit of the term accessories or parts. 2. The Revenue is, aggrieved of the finding of the CCE (A) and the following ground has been urged in this regard : 2. The item Pipelines are only equipments used for conveyance of the materials having independent function and cannot be treated as part and parcel of a plant. 3. It is evident that the Pipelines are not used for produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l goods as contained in Rule 57Q and the goods involved which are not used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products are not eligible for credit as capital goods under Rule 57Q, which is squarely applicable to this case also. In the instant case the item Pipelines used only for conveyance of the materials and thus by not satisfying the conditions laid down to the Explanation 1(a) or 1(b) to Rule 57Q. 3. The learned SDR for the department has referred us to the order of this Tribunal bearing No. 646/96 and urged that in the light of this order, the pipelines used for conveyance of material cannot be considered as capital goods as defined under Rule 57Q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under heading Nos. 82.02 to 82.11; (aa) all goods falling under Chapter 84 (other than Internal Combustion Engines falling under heading No. 84.07 or 84.08 and of a kind used in motor vehicles, Compressors falling under heading No. 84.14 and of a kind used in refrigerating and air-conditioning appliances and machinery, heading or sub-heading Nos. 84.15, 84.18, 8422.10, 84.24, 84.29 to 84.37, 84.40, 84.50, 84.52, 84.69 to 84.73, 84.76, 84.78, expansion valves and solenoid valves falling under sub-heading No. 8481.10 of a kind used for refrigerating and air-conditioning appliances and machinery); (b) all goods falling under Chapter 85 (other than those falling under heading Nos. 85.09 to 85.13, 85.16 to 85.31, 85.39 and 85.40); (c) all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar circumstances, in the case of cables which provide electric connections within the plants held that the same could not be considered as capital goods in the light of the definition capital goods as set out under Rule 57Q. We have in our Order No. 46/96 held as under : 4. I observe that the scope of the term capital goods has been set out by way of definition in the explanation to Rule 57Q, the main provisions under which the Modvat credit in respect of capital goods has been allowed. This definition as would be seen from the above cannot be taken to cover electric cables of the type referred to in the impugned order. The learned lower authority has not entered any finding as to whether this item would constitute a component or accesso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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