9911796707
TMI Blog1999 (8) TMI 275X X X X Extracts X X X X X X X X Extracts X X X X ..... is concerned; the same is not governed by the provision of Rule 57Q. He submits that boiler may be a machine and may under specific circumstances qualify for consideration of Modvat credit under Rule 57Q but the raw materials for manufacture of boiler can not be construed as machines or parts and equipment of machines. He, therefore, submits that the Commissioner (Appeals) has erred in allowing Modvat credit on boiler material. 3. Regarding pipe fittings and pipes ld. DR submits that there is no nexus between the machines and pipe fittings and pipes, Modvat credit as capital goods is available only on machines, plants etc. Pipe fittings and pipes cannot be termed as machines and plants etc. About turbine ld. DR submits that turbine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant for generation of electricity. He submits that since boiler is capital goods and the materials are inputs. In terms of Rule 57D(2), the inputs become entitled to Modvat credit of capital goods. He, therefore, submits that in terms of this judgment of the Tribunal the respondents were entitled to Modvat credit on the inputs which went into the manufacture of boiler. He, therefore, submits that the ld. Commissioner (Appeals) had rightly held so. On pipe fittings and pipes ld. Counsel submits that the Tribunal had consistently been holding that pipe fittings and pipes which are used in the process of manufacture of the final product become eligible for Modvat credit. He submits that in the instant case pipes and pipe fittings are used for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al's decisions in which it has been held that the pipes are used for conveying the material which is used in the process of manufacture then they are capital goods. In the instant case pipes and pipe fittings are used for conveying the steam which is in turn used for moving the turbine for generation of electricity and therefore, pipes and pipe fittings will be entitled to Modvat credit. On turbines we note that turbines are used for generation of electricity and since electricity is used for running the plant and machinery for manufacture of VP Sugar, therefore, turbine is a machine and will be eligible for Modvat credit inasmuch as it is used for production of the final product. Insofar as cables are concerned, we follow the ruling of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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