9911796707
TMI Blog1999 (11) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Rules 57-A and 57-Q of the Central Excise Rules, 1944. The Revenue was of the view that credit was not admissible on electrical items such as fuse, relay control panels, switches, distribution boxes, electric motors, etc. and items such as brass casting articles, MS pipes, tubes, copper pipes, base plate, etc. on the ground that the above mentioned items did not have a direct nexus with producing, processing or bringing about any change in substance in the manufacture of finished goods, and hence not covered by the definition of capital goods under Rule 57-Q. 2. Therefore, show cause notices were issued covering the period from April, 1995 to November, 1995 and January and February, 1996 proposing recovery of wrongly availed Modv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, we see no reason to interfere with the finding of the Commissioner (Appeals) on these items and accordingly confirm his order relating to these items. As far as item No. 7 is concerned, it is covered by the decision of the Tribunal in the case of Lupin Laboratories v. Commissioner of Central Excise, Indore reported in [1998 (100) E.L.T. 52]. 5. The item at Sl. No. 13 has been explained by the respondents [in their appeal before the Commissioner (Appeals)]. Cast Insulators are used in transformers and with cranes. Whenever any insulator breaks or get carbonized, it has to be changed immediately otherwise flash over may be caused resulting in stoppage of production. Electric Perma Wood rings are used at the top of the transformer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... racers to the furnace oil line is very essential. The above mentioned use has not been disputed by the Department. Having regard to the use as explained; we hold that heat tracers are covered by the definition of capital goods and are hence entitled to credit in terms of Rule 57Q of the Central Excise Rules. 8. The item covered at Sl. No. 10 admittedly requires further finishing before being used as parts of the production machine. In other words, they are not parts of the production machine as yet. Therefore, they are not covered by the definition of capital goods and hence we hold that Modvat credit is not available on this item. 9. Copper tubes and pipes are used in Arc furnace and AOD converter for supply of oxygen, argon an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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