9911796707
TMI Blog1998 (11) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... against Order-in-Original No.196/95 (C), dated 31-8-1995 passed by Collector of Central Excise and Customs (Appeals) wherein duty demand involved was of Rs. 7,890/- in respect of Modvat availed under Rule 57Q for (a) Load cell used in Platform Weighing scale and (b) Capacitors used in electric motors and these were held to be wrongly availed and the said amount was confirmed. 2. Heard Shri R. Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard ld. SDR who cites the case of 1994 (70) E.L.T. 75 (Tribunal) wherein in the majority decision in the case of TELCO Ltd. it had been held measuring instruments and material handling equipments would not be eligible to Modvat credit as capital goods because they did not bring in substantive change in any substance. He submits that weighing machines are measuring instruments and therefore the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic convertors used to regulate the speed on main drive in kiln etc. were eligible under capital goods. The analogy of this decision clearly applies in this case as it is not in dispute that the capacitor increases the speed of the electric motor concerned. 6. I have considered the submissions made on both sides as well as records of the case. I find that as far as weighing scales (weighing mach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parts and components thereof would also qualify for the same treatment. In view of this decision, the Load Cells in question are clearly eligible for Modvat credit under Rule 57Q. 7. As far as the question of capacitors is concerned, it is not disputed that they are affixed to the electric motors which provide motive power to the plant for the purpose of manufacturing activity of the final prod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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