1999 (8) TMI 633

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..... ication plant is an eligible capital goods to avail Modvat credit in terms of Rule 57Q is an issue to be considered in this case. 2. Shri S. Raghu, learned Counsel appearing for the appellants submitted that the item as such was used in relation to the process of manufacturing. He explained the process of manufacture. He said that water is an essential requirement for cutting and polishing grani .....

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..... is purified and water is recycled for use in the factory 3. Arguing for the revenue Smt. Aruna Gupta, learned DR, submitted that the plant as such cannot be considered to be used in processing and producing the initial product. The water clarification plant is neither covered under Rule 57Q for the purpose of Modvat credit. She also relied upon the decision of the Tribunal in the case of Modern .....

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..... both sides with reference to the facts of the case, I find that there is some force in the arguments advanced on behalf of the appellants that there is a clear finding given by the authorities below that the plant is installed to prevent pollution and also to remove hazardous substances present in the effluent. In view of the admitted position that water clarification plant is installed to preven .....

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