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TMI Blog2006 (5) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... 05.1993 without erection of Pollution Control System. The Appellant took over the said factory, when the aforesaid direction of the Hon'ble Supreme Court was communicated to the Appellant by West Bengal Pollution Control Board on 03.02.1999 and the Hon'ble Supreme Court was pleased to pass the following Order dated 26.10.99:- In view of the affidavit filed on behalf of the Pollution Control Board dated 4th October, 1999 applicants are permitted to reopen the industry which was closed down pursuance to the order of this Court. These applications are disposed of accordingly. 2. As per the advice of M/s. UEM India (P) Ltd., a Pollution Control System under a technology called ADI-BVF Technology was installed at the factory. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed the Modvat Credit of ₹ 2,38,174/- availed by the Appellant on cement and steel used for erecting the said Effluent Treatment Plant and also levied equivalent penalty upon it and further directed for payment of interest, while accepting the relevant factual position as regards the installation and consequent to the Supreme Court order but held that Cement and Steel cannot be treated as either capital goods or inputs. The said order of the Deputy Commissioner was upheld by the Commissioner (Appeals) by order dated 23.09.2002. In the said order, the Commissioner (Appeals) inter-alia held that though ETP is an eligible capital goods, cement and steel used for construction of ETP are not eligible for credit under Rule 57Q. Hence this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r end-product is part and parcel of the manufacturing process of that end-product. (ii) 2001 (129) ELT 48 (Siv Industries Ltd. vs. CCE) (Madras High Court) (iii) 2001 (129) ELT 684 (CCE vs. Birla Jute and Industries Limited) Modvat on capital goods-Pollution control equipment is an integral part of the process of manufacture of products-Credit admissible-Rule 57Q of Central Excise Rules, 1944 [para 4] (iv) 2005 (192) ELT 915 (India Cements Ltd. vs. CCE) Cenvat/Modvat-Capital goods-Structural items being used to fabricate structural support to pollution control equipments, become part of plant machinery, equipments, etc. and eligible for capital goods credit-Explanation 1 (b) to Rule 57Q of erstwhile Central Excise Rules, 1944 [p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort to plant and machinery, entitled to capital goods credit under Rule 57Q of erstwhile Central Excise Rules, 1944-Rule 3 of Cenvat Credit Rules, 2002 [para 2]. 6. The issue that even if the plant constructed by using the duty paid items is an immovable property, Modvat Credit cannot be denied is also well settled by a series of decisions in the case of 2002 (150) ELT 650 (United Phosphorous Ltd. vs. CCE)-It has been held, Modvat/Cenvat Credit on capital goods and use of goods in manufacture of immovable property cannot be ground for denial of capital goods credit and none of any erstwhile Rule under Chapter V of Section AAAA of Central Excise Rules, 1944 disallowed such credit permissible under Rule 57A ibid, [paras 4, 5]. 7. In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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