9911796707
TMI Blog2000 (1) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... se Tariff Act. They are also availing the facility of Modvat credit under Rule 57-Q of the Central Excise Rules. During the period November, 1996 to February, 1997 the appellants had taken Modvat credit of the duty paid on M.S. fabricated tanks as capital goods under Rule 57-Q, amounting to Rs. 31,520/-. The Assistant Commissioner of Central Excise disallowed this credit holding that the goods wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the goods in question are M.S. Fabricated tanks, some of which were used as receptacle for sulphated syrup at a particular stage of the process of sulphuration, which was a part of the process of manufacture of the final product, and some others were used for preparation of milk of lime which was, in turn, used in the process of manufacture of the final product. He has further submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7Q ibid. In the latter case, specifically built tanks used for storing a corrosive 'raw material, viz. Hydrofluoric acid was held to be capital goods eligible for credit under Rule 57Q ibid. The learned Advocate, relying on these decisions of the Tribunal has submitted that the issue involved in the present appeal is quite analogous to those involved in the above cases and, therefore, the above de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and hence did not fall within the definition of capital goods. The lower appellate authority ought to have considered the nexus between the vessels and the process of manufacture in the appellants factory. This, he did not do. The order of the Commissioner (Appeals) cannot be said to be a speaking order. As regards the modvatability of the M.S. fabricated tanks used as receptacle of sulphated sy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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