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TMI Blog1998 (11) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... Pump, Consistency level Box and Oscillating Shower Arrangement as none of these bring about any intrinsic change in the raw material in the manufacturing process concerned and therefore fall outside the scope of definition of capital goods under Rule 57Q. 3. The second point of dispute is that Modvat credit was taken on certain goods on the basis of original invoice. It is the contention of the Revenue that in view of the decision in the case of M/s. Jai Bhavani Steel Industries (P) Ltd., as reported in 1996 (83) E.L.T. 537 (T), original Gate Passes are not proper documents for taking such credit. 4. Heard learned SDR Shri R. Victor Thyagaraj who submitted that Stock Pumps are only used for transfer of pulp and do not bring about any ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this issue is covered in the case of Rajasthan State Chemical Works as reported in 1991 (55) E.L.T. 444 (S.C.). He also cites the case of Manstructurals Limited as reported in 1997 (93) E.L.T. 457 and the case of Nova Udyog Ltd., as reported in 1996 (88) E.L.T. 532 (T) with regard to Consistency level box and the oscillating shower arrangement. He submitted that the Flow chart at Page 49 of the paper book clearly shows how these two equipments are also integrally connected with the full plant and without either of them the manufacturing process would come to a halt. The Consistency level box regulates the flow of the pulp towards the moulding machine at a particular rate. If this is not done, the moulding process would come to a halt. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt and use of the goods in the factory was otherwise verified was clearly allowed in view of the following case laws :- (a) Bharat Ispat as reported in 1996 (86) E.L.T. 536; (b) Shiv Shakti Tube as reported in 1997 (90) E.L.T. 547. He further submitted that Notification No. 23/94-C.E. (N.T.), dated 20-5-1994 has also covered this matter. Therefore the credit taken on original invoices cannot be denied. I have considered the arguments on both sides and the records of the case carefully. With respect to the three items noted above wherein Revenue disputes their qualification as capital goods, I find that only ground for this dispute by Revenue is that they do not bring about any intrinsic change in the raw-material namely the pulp. I fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it on the strength of original invoice had been rightly taken. This decision relied on the judgment in the case of Bharat Ispat as in 1996 (86) E.L.T. 536 (T). As against this , we find that the case of Jai Bhavani, supra, relied upon by the Revenue, is not directly concerning the use of original Gate passes for Modvat credit but was delivered with respect to the taking of Modvat credit on endorsed subsidiary gate passes. The two facts are found to be quite different and therefore in the face of decision in the case of Shiv Shakti Tubes on the issue of original gate pass, the judgment in the case of Jai Bhavani stands distinguished and not applicable to the facts of this case. It is therefore found that the impugned Order-in-Appeal has corr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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