9911796707
TMI Blog1999 (9) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... d Worm Shaft which is a conveyor system for carrying sugar bags filled with sugar to the stitching machine in the case of Kothari Sugars Chemicals Ltd. The following questions have been sought to be referred to the Hon ble High Court of Madras :- (i) Explanation (1)(a) to Rule 57Q of Central Excise Rules 1944 defined capital goods as Machines, Machinery, Plant, Equipment, Apparatus, Tools, or Appliances used for producing or processing of any goods or bringing about any change in any substance for the manufacture of final product . When the main provision allowed credit of duty paid only on certain category of goods, is the Order of the Honourable Tribunal correct in extending the scope of capital goods credit by relying upon provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r finding in the case of M/s. Velathal Spinning Mills Ltd. The Tribunal in its final order in question had also noted that the decision in the case of M.M. Forgings which reads Rule 57S harmoniously with Rule 57Q had been followed in 3 subsequent decisions by the Tribunal as indicated therein. Apart from this, the Tribunal had also considered that measuring and testing instruments like Spectrophotometer had been held to qualify for Modvat credit under Rule 57Q in the case of Grasim Cements as in 1997 (96) E.L.T. 354 (T). He further submitted that as far as the Worm Steel and Worm Shaft were concerned, he cites the case of Upper Ganges Sugar Industries Ltd. v. C.C.E. wherein components of conveyor system for sugarcane had been held as elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he specific goods in question itself is concerned, there also the final order relies upon a number of earlier decisions of the Tribunal specific to the items in question and therefore, in those cases also, no point of law now emerges for being referred to the Hon ble High Court. I also find that the concept of capital goods on the detailed judgement of the Hon ble Apex Court in the case of Rajasthan State Chemicals Ltd. wherein the Hon ble Apex Court had given detailed guidelines as to the meaning of capital goods used in the manufacture of final goods. The final order clearly follows the said guidelines. I find that since the basic issue itself as to whether these goods would therefore qualify as capital goods and the nature of role played ..... X X X X Extracts X X X X X X X X Extracts X X X X
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