1996 (12) TMI 246

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..... determination in this appeal is whether power driven pumps used by the assessee in the manufacture of paper, capital goods and Modvat credit could be taken on the duty paid on them. The Assistant Commissioner had accepted the assessee s claim. In appeal the Commissioner (Appeals) has held that the pumps are not capital goods because they do not satisfy the requirements of Rule 57Q, that they mus .....

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..... sentative contends that these decisions related to other goods and that the pumps cannot be considered capital goods since they do not satisfy the requirements specifically provided in the rule. 4. In the decisions relied upon by the appellant, material handling equipment such as frames and electric wires and cables have been held to be capital goods. The reasoning in these decisions is that wit .....

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..... ing paper, out of the raw materials normally used to make paper. Pulp is either a raw material or an intermediate product in the manufacture of paper. It is, in fact, the penultimate product. Therefore the pumps used to transport the pulp within the plant would be components of that plant and would be entitled to Modvat credit as such components. Appellant was entitled to credit of the duty paid o .....

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