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TMI Blog2004 (4) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... hary pleaded that that the amount of Modvat credit which is being challenged by them falls into three categories namely (i) on capital goods used in the factory, (ii) on capital goods which are partly used in the factory and partly used in mines, (iii) on capital goods used in mines. He pleaded that in view of the Tribunal Larger Bench decision in case of Madras Cement Ltd. v. Commissioner of Central Excise, Madras reported in 2003 (158) E.L.T. 293, he is not pressing for Modvat credit on capital goods used exclusively in mines. Therefore, he is limiting his arguments only on the goods which are used within the factory of the manufacturer and on the capital goods which are partly used in the mines and partly used in the factory. 5. The Consultant pleaded that the item-wise position of the capital goods used in the factory is as under :- (i) BULLDOZER (USED IN PLANT) - He pleaded that the Bulldozer is a powerful equipment used in the Plant for dozing the Clinker into the chutes from which the Clinker is passed on to the Cement Mills hoppers for further processing and also to mix up the hot and cold clinker at the Clinker stock pile. The item is covered in the definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emical also avoids corrosion on the cylinder liners. Power from DG sets is used for manufacture of final product i.e. Clinker/Cement and therefore credit may be allowed. He relied upon the following decisions - (i) CCE, Coimbatore v. Jawahar Mills Ltd. - 2001 (132) E.L.T. 3 (S.C.) (ii) Maharashtra Scooters Ltd. v. CCE, Pune - 1999 (112) E.L.T. 351 (T) (iii) CCE, Indore-II v. Diamond Cement - 2001 (127) E.L.T. 777 (T) (iv) India Cements Ltd., Chilamkur in CEGAT Final Order No 1588/2001, dated 1-8-2001 (v) SILICON FLUID - Ld. Consultant pleaded that Silicon Fluid is used to arrest the leakages of coolent in cylinder liners and engine blocks of DG sets. It is an adhesive of 0 Ring used in the Cylinder liners which is very important in generation of power by DG sets. The DG power is being used for manufacture of final product i.e. Clinker/Cement. Therefore credit should be allowed on this item. He relied upon Supreme Court decision in case of CCE, Coimbatore v. Jawahar Mills Ltd. - 2001 (132) E.L.T. 3 (S.C.) (vi) SPARES TO DUMPER - Ld. Consultant pleaded that Dumper is used for transporting Limestone from Mines to Crusher. They have captive Mine adjace ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines, Modvat credit cannot be granted in view of the Apex Court decision in case of Madras Cement Ltd. v. CCE, Hyderabad, reported in [2003 (158) E.L.T. 293 (T) = 2003 (56) RLT 978] and in case of CCE, Coimbatore v. Jawahar Mills Ltd. reported in 2001 (132) E.L.T. 3 (S.C.) 9. We have carefully considered the submissions made by both the sides. The dispute involved in these appeals is for period from January 95 to July 96. The appellants have claimed that Modvat credit on Bulldozer used in the plant has been wrongly denied by the Department. They claimed that Bulldozer is used in the factory for handling raw materials in relation to the manufacture of the finished goods. We find that the Commissioner (Appeals) has denied the credit on Bulldozers on the grounds that Bulldozers falling under Chapter Sub- heading 8429.00 are not eligible capital goods within the meaning of Rule 57Q at the relevant time i.e. August 1995 and these cannot be considered as used for producing or processing of any goods or for bringing about any change in the substance for the manufacture of final product. We find that at the relevant time as per explanation 1(a) below Rule 57Q(1), capital goods mean mach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les, 1944, its parts are eligible for credit. We find that locomotive engine is not a material handling equipment within the factory of manufacturer like Bulldozers, etc. nor it is covered by explanation 1(a) below Rule 57Q(1) of the Central Excise Rules, 1944. Therefore credit of duty on Spares of Locomotive Engine has been correctly denied by the Lower Authorities. 11. Modvat credit on Sodium Sylicate has been denied to the appellants on the grounds that the same is chemical falling under sub-heading 2839.10/2942.00 and the goods falling under Chapter 28/29 are not eligible capital goods. According to the appellants, Modvat credit is allowable as Sodium Sylicate is used to arrest the leakage arise at various places. We find that Sodium Sylicate is neither a machine or machinery, plant or equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of the final product. Therefore it is not covered by explanation 1(a) and explanation 1(b) of below Rule 57Q and hence it is not eligible for Modvat credit. It is used only for maintenance of plant and the larger Bench of the Tribunal has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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