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TMI Blog2006 (4) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... t Ion Exchangers were chemicals used for treatment of water for softening the same. These goods fell under CSH 39.14 not covered for eligibility to credit under Rule 57Q. The other item viz. Point Attack Pits were spares, for surface miners falling under sub-heading 8430. Sub-heading 8430 was excluded from the purview of capital goods as per Rule 57Q. Surface miner was used in the appellants mines. As the capital goods used within the factory of production alone were eligible for capital goods credit, the item was not eligible for credit under Rule 57Q. Accordingly, the lower appellate authority sustained the denial of credit to the tune of Rs. 1,19,046/- and imposed penalty of Rs. 10,000/- under Rule 173Q(bb) of the Central Excise Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000 (119) E.L.T. 197 (Tribunal-LB) wherein the Tribunal had held that the declaration filed by the assessee in terms of Rule 57Q of Central Excise Rules, 1944 was sufficient for extending credit within the meaning of Rule 57A. In the above decision Tribunal also held that lubricant used in the machinery for its better functioning was used to facilitate manufacture and so was used in or in relation to the manufacture of final products. 2.1 As regards the other item, viz. Point attack picks, there was no dispute that it was an item of machinery tool falling in one of the headings specified as eligible for capital goods credit under Rule 57Q. PAP were spares for surface miner and surface miner was used in mines in the factor premises. It w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Kitply Industries Ltd. reported in 2003 (161) E.L.T. 1173 (Tri. - Del.) ion exchanger used for desalination of boiler walls was held to be part of the plant and entitled to capital goods credit. It is not the case of the department that the water treatment plant is one of the items of machinery specified as not admissible for credit in Rule 57Q. Therefore ion exchanger being a part of the plant is eligible for capital goods credit in terms of the ratio of the above order. In the Larger Bench decision of the Tribunal in CC CE, Meerut v. Modi Rubber Ltd. reported in 2000 (119) E.L.T. 197 (Tribunal-LB) it was decided that lubricants used for better functioning of the machinery was eligible for input credit in relation to the final produc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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