9911796707
TMI Blog2000 (1) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... eal against the order-in-appeal dated 20-7-1999 passed by the Commissioner of Central Excise (Appeals). In this case, the benefit of Modvat credit in respect of various items is allowed to the respondents. 2. Ld. D.R., appearing on behalf of the revenue, submits that the goods, in question, are not capital goods under Ruls 57Q of the Central Excise Rules as they are not used for production or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of hose pipes. He submits that in the present case hose pipes are used as a part of hydraulic system in various production units. 4. In respect of rubber rungs, the Ld. Counsel submits that these are spare parts for generating sets installed in the factory and used to prevent outflow of oils/gases from the joints of various pipe fittings of generating sets. He submits that the Tribunal in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as the electric arc furnace is a capital good. As per the definition of capital goods under Rule 57Q of the Central Excise Rule, the parts of furnace are also entitled for the benefit of Modvat credit. 5. In respect of Thyristor, he submits that these are used to control roling speed variably and precisely. The thyristor deives are needed and these are electronic switches, which can operate at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch are similar to the computers. As the computers are entitled for the benefit of Modvat credit, the parts of the computers are also entitled for the benefit of Modvat credit. In respect of air blower/electric fan, he submits that the benefit is allowed by the Tribunal in the case of Ester Industries Ltd. v. C.C.E. reported in 199 (114) E.L.T. 1039. He, further, submits that the Tribunal in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard both sides. 7. In this case, the contention of the revenue is that the goods are not covered under the definition of the capital goods, as provided under Rule 57Q of the Central Excise Rules. The Commissioner (Appeals) in the impugned order specifically held that all the goods, in question, are components/assessories of the machines. Therefore, these are covered under Explanation l (b) of Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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