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TMI Blog2018 (2) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... the machinery qualifying them as capital goods. Once that is so, the appellant-assessee was eligible under Rule 57Q of the Rules of 1944 to avail Modvat credit thereon - credit allowed - appeal allowed - decided in favor of appellant-assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... y treating them as capital goods. 3. Sri Challa Gunaranjan, learned counsel for the appellant-assessee, would point out that in its explanation to the show cause notice, the appellant-assessee spelt out as under : 'In response to the above show cause notice, we submit that the HR Coils are used for fabrication of Pipe Lines for Condensor Cooling System and Raw water pumping and circulation from KSP Canal. Cooling water piping is required for circulation of cooling water for Condensor cooling as well as other coolers. The system comprises of the mixed flow vertical circulating water pumps for the steam turbine drawing water from a sump connected to the cooling tower basin. The cooling water will be passed through condenser and the hot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of the Supreme Court in Commissioner of C. Ex., Coimbatore v. Jawahar Mills Ltd. [2001 (132) E.L.T. 3 (S.C.)] and Indian Farmers Fertilisers Co-Operative Ltd. v. Collector of Central Excise, Ahmedabad [1996 (86) E.L.T. 177 (S.C.) = (1996) 5 SCC 488]. 6. In the light of the aforestated legal position, we are of the opinion that once the appellant-assessee demonstrated before the authorities that use of the HR coils in the cooling system of the power plant was essential for its functioning, they necessarily have to be treated as part of the machinery qualifying them as capital goods. Once that is so, the appellant-assessee was eligible under Rule 57Q of the Rules of 1944 to avail Modvat credit thereon. The questions of law raised a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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