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TMI Blog2002 (2) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Tariff Act, 1985. During the material period, they took Modvat credit on Plates and HR Plates as also on Welding Electrodes as capital goods under Rule 57Q. The department, in the show cause notice issued to the party, took the view that the said items were not covered as eligible capital goods under Rule 57Q. In their reply to the show cause notice, the party submitted that the Plates were utilised for fabrication of boiler and Flock House, which were themselves capital goods falling under Chapter Heading 84.02 and Chapter Heading 84.45 respectively. They contended that the Plates and Welding Electrodes were to be treated as components, spares and accessories of eligible capital goods falling under Chapter 84. In other words, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n used for fabrication of Boiler and Flock House during the material period. The Boiler and the Flock House were claimed to be classifiable under CH 84.02 CH 84.45 respectively. This claim of the assessee has not been rebutted by any of the authorities below. The goods falling under CH 84.02 and CH 84.45 were covered, during the material period, under Sl. No. 2 of the Table annexed to sub-rule (1) of Rule 57Q. It is not in dispute that the Plates had become part of the Boiler and Flock House. If that be the case, the items would be covered under Sl. No. 5 of the Table ibid. Sl. No. 5 comprised components, parts and accessories of capital goods covered under items 1 to 4 of the Table. The Plates were components of eligible capital goods co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery is a question which is squarely covered in favour of the assessee by the Larger Bench decision of the Tribunal in Jawahar Mills (supra) and that decision has since been approved by the Apex Court. [2001 (132) E.L.T. 3 (S.C.)] The Modvat credit taken on Welding Electrodes will, therefore, be admissible to the appellants. 8. In the result, the Modvat credit taken on Welding Electrodes as also on Plates/HR Plates used for fabrication of Boiler is allowed. The question whether the Plates/HR Plates used for fabricating the Flock House are eligible capital goods under Sl. No. 5 of the Table to Rule 57Q(1) during the material period will be gone into by the Commissioner (Appeals) in accordance with law and the principles of natural ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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