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TMI Blog1998 (12) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... rder-in-appeal denies the Modvat credit on the storage tanks and dip rods located within the factory premises of the appellants and used for storing the raw materials on the ground that they are not in any way connected to the production of the final product. This he challenges in view of the decision in the case of Rajasthan State Chemicals Works reported in 1991 (55) E.L.T. 444 (S.C.) wherein it has been held that the manufacture is the end result of one or more processes through which the original commodities are made to pass and each step towards such production would be a process in relation to the manufacture. It was further held that there is no warrant for limiting the meaning of the expression in the manufacture of goods to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rer. This was the definition as it stood at the relevant time. 6. Oxygen Tank and the Furnace can certainly be regarded as part of the plant. That being so, Oxygen Lancing Pipe must be regarded as component of such plant, and has to be regarded as capital goods for the purpose of the rule. The assessee would be entitled to the benefit of the rules in regard to duty paid on Lancing Pipe." He further submits that in para 10 thereof , the expression plant which is not defined under Central Excise law was considered by the Hon ble Tribunal in this decision, in terms of Section 43 (3) of the Income-Tax Act and accepted the legal position that a wider meaning is to be given to the expression plant . He, therefore, submits that during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng machinery as the use of these raw materials by another manner was not practical and feasible. I, therefore, find that the storage tanks which contain the raw materials are connected to the manufacturing process for the purpose of feeding the raw material for manufacture of paints. In view of the wider interpretation given to the manufacturing process in the case of Rajasthan Chemical Works supra wherein even pumping, lifting and otherwise handling of raw materials before the said raw materials get changed towards the final product has been held as integral to the process of manufacture and the equipment needed therefore has been held eligible as capital goods for Modvat credit, therefore, applying the same anology and same wider scope ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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