2003 (8) TMI 118

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..... 1995 to Feb., 1996, the below-mentioned items were eligible for capital goods credit under Rule 57Q :- (1) Hacksaw Blades used in the factory for cutting purposes in connection with repairs and maintenance of machinery; (2) Various items used in mines situate away from the factory; (3) M.S. pipes and pipe fittings used in the factory for conveyance of water, steam, gases, hot air etc. required .....

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..... ines are concerned, the question whether such goods, which were used outside the cement factory, were eligible capital goods for Modvat credit stands settled by the Apex Court in Jaypee Rewa Cement v. CCE [2001 (133) E.L.T. 3 (S.C.)]. It was held by the Apex Court, in para 22 of its judgment, that capital goods used in the off-factory mines were not eligible for Modvat credit under Rule 57Q. Hence .....

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..... td. [2000 (118) E.L.T. 608]. DR has opposed by submitting that the tank was not used for the manufacture of cement and hence not covered by the definition of capital goods under Explanation (1) to Rule 57Q(1). The submission of the DR appears to be acceptable inasmuch as the Syntex tank was used only as a water storage. No integral connection between such storage and the manufacture of cement has .....

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