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TMI Blog2006 (1) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... oil, A.M.P. 32/121 and Transformer of 37.5 K.V.A. 4. It was argued that the Deputy Commissioner of Central Excise, Moradabad had verified the use/role of the capital goods. Submitted by the assessee and on the basis of which use of each of the item is as under:- CI Plumber Block (Part of Mill C.H. 84) These are used in fitting of open gearing of last mill TRPF to support the gear at both sides as required for it s fitting to run the unit. By help of this unit we run last mill for better juice extraction. HRP Coil (Component of motor S.H. 8501.00) These coils are used in the base frame of Mill No. 3 D.C. Motor for running of Mill No. 3. By help of Mill No. 3, we again crush the sugar cane fibers after IInd Mill to increase sugar recovery. Shape and Section (Component of mill Ch. 84) It is used to make platform for mill no. 3 D.C. motor which drives Illrd mill for crushing of sugar cane to get juice and finally obtain finished product i.e. sugar. HR Coil. (Component of mill Ch. 84) It is used for making of headstocks of Illrd mill. In these headstocks, mill rollers are fitted and run for cane crushing to get juice and finally sugar. A.M.P. 32/AMP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmon civil construction items and in the normal course these items are used in the sugar plant as accessory to machine. Therefore, the factual position about their use would determine the eligibility of the Modvat credit on these goods, (iii) Nava Bharat Ferro Alloys Ltd. v. CCE, Hyderabad, reported in 2004 (174) E.L.T. 375 (Tri.-Bang.) where it was held that columns of heavy fabricated structures and bracings, used for supporting columns of boiler, are in the nature of construction material and are not eligible for credit as capital goods. HR coils are general purpose items having multifarious uses and not covered by clauses (a) to (d) of Explanation to Rule 57Q. 8. On behalf of M/s. DSM Sugar, it was argued that in the case of M/s. D.S.M. Sugar (Kashipur) v. CCE, Meerut, in Final Order No. A/420/98-NB(S), dated 21-4-1998, it was held by the Tribunal that impugned items are used as raw material of new boiler, new turbine, molasses tank, etc., during the course of erection and fabrication thereof. These have been used in the manufacture of machine or machinery which are used for producing or processing the goods. Once these materials are used for fabrication of the machine or mac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants are relying upon the decision of the Tribunal in the case of Rosa Sugar Works v. Commissioner of Central Excise, Kanpur vide Final Order No. A/894/2000-NB(DB), dated 12-10-2000 in which the benefit of Modvat credit on Angles, plates, bars and rods, joists and H.R. sheets used in the expansion project and for repairing were allowed. The appeal filed by the Revenue against this order was dismissed by the Hon ble Supreme Court vide Order dated 27th July, 2001 in the case of Commissioner of Central Excise, Coimbatore Ors. v. Jawahar Mills Ltd. Ors in Civil Appeal Nos. 619-626 of 2000 [2001 (132) E.L.T. 3 (S.C.)]. In view of the above decision of the Tribunal appellants are entitled for the benefit of credit in respect of goods in question. 4. Gangeshwar Ltd. v. CCE, Meerut - 2002 (150) E.L.T. 242 (Tri.-Delhi) where it was held that that in the case of Rosa Sugar (Supra), plates, bars and rods used for repairing damaged parts of machinery, storage tank, boiler etc. have been held to be capital goods eligible for credit under Rule 57Q. In the case of J.K. Cement Works, M.S. Plates used for repairing kiln-shell were held to be eligible capital goods. In both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions at different loads on 1.5 M.V. Turbine. This turbine is used to run sugarhouse and crystalliter s stirrers to get the final product. The regulation of voltage is the safety devise of the electrical appliances. Therefore, it is helpful in getting the final product. It is an accessory of turbine and the Modvat credit has to be allowed. (2) CI Plumber Block.: This is used in fitting of open gearing of last mill TRPF to support the gear at both sides to run the unit. By help of this unit last mill is run for better juice extraction. I, therefore, find that this is eligible for Modvat credit being a part and accessory of open gearing. (3) HRP Coil : These are used in the base frame of Mill No. 3 D.C. Motor for running of Mill No. 3. Since these are used in base frame for D.C. Motor. They are only a construction material and not any part or component or accessory. It was held in the case of Nava Bharat Ferro Alloys Ltd. v. CCE, Hyderabad, reported in 2004 (174) E.L.T. 375 by the Tribunal that columns of heavy fabricated structures and bracings, used for supporting columns of boiler, are in the nature of construction material, and are not eligible for credit. Since these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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