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TMI Blog2005 (6) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/-. Appeal No. 14/2004 is against denial of this credit to them by the lower authorities. In January 1998, also, the party availed similar credits, amounting to Rs. 4,52,415.30 and Rs. 1,07,160/-. Appeal Nos. 15/2004 and 13/2004 respectively are against denial of these credits by the lower authorities. 2. Heard both sides. Ld. Counsel for the appellants submits that the plates used in the fabrication of storage tanks were covered by clause (d) of Explanation (1) to Rule 57Q(1) as the rule stood during the period October, 1995 to March, 1996 and thereafter. It is submitted that, as generation of molasses as a by-product is inevitably incidental to the manufacture of sugar, its storage should be treated as part of the process of manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Tri-Del.) 9. Travancore Cochin Chemicals Ltd. v. Commr., 2002 (147) E.L.T. 992 (Tri-Bang.). Ld. Counsel also relies on the Apex Court's judgment rendered in the case of Commissioner v. Jawahar Mills Ltd., 2001 (132) E.L.T. 3 (S.C.). Finally, ld. Counsel has alternatively pleaded that, in the event of the subject goods being held ineligible for capital goods credit, the benefit of input duty credit should be allowed in terms of the Tribunal's Larger Bench decision in Commissioner v. Modi Rubber Ltd. & Others, 2000 (119) E.L.T. 197 (T-LB) = 2000 (38) R.L.T. 718 (CEGAT-LB). 2. Ld. DR submits that, during the period of dispute, the admissibility of capital goods credit depended on the tariff classification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) January 1998. For the first part of the period of dispute, the provision of law to be examined is Rule 57Q as amended by Notification No. 11/95-C.E. (N.T.) dt. 16-3-1995 and, for the second part of the period, Rule 57Q as recast w.e.f. 1-3-1997 would arise for consideration. It is significant to note that, till it was amended by Notification No. 14/96-C.E. (N.T.) dated 23-7-1996, the Rule allowed capital goods credit on plant, equipments, machines, appliances, tools etc., which were "used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products" as also on components, spare parts and accessories of such plant, equipments, machines etc. used for the aforesaid purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Ld. Counsel has, particularly, relied on clause (d) of the definition of "capital goods" under Explanation (1) to Rule 57Q(1). This clause, which reads thus : "components, spares and accessories of the goods specified against items (a) to (c) above", formed part of the definition of "capital goods" under the said Explanation (1) inserted under Rule 57Q by Notification No. 14/96-C.E.(N.T.) dt. 23-7-1996. But the said 'explanation' was in place only till 28-2-1997. The intervening period (23-7-1996 to 28-2-1997) is not a part of the period of dispute in this case. Even otherwise, as already noted, clause (d) is of no aid to the appellants' claim. It is also noticed that a similar clause was available under the 'explanation' inserted u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in their case, the question is whether M.S. plates etc. used in the fabrication of storage tanks are components/parts/accessories of any 'capital goods' falling under any of the Tariff entries specified for capital goods credit under Rule 57Q during the period of dispute. Neither these goods nor the tanks fabricated therefrom were falling under any of the tariff headings specified for Modvat purpose under Rule 57Q during the said period. Admittedly, it was as late as on 1-3-2001 that the rule-making authority included storage tanks (irrespective of tariff classification) in the category of eligible capital goods for Modvat purpose. Nobody has argued before me that this amendment has retrospective effect. In the case of Bhansali Engg. Poly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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