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2014 (9) TMI 535 - HC - Central ExciseMODVAT Credit - Whether the Tribunal is correct in allowing Modvat credit in respect of iron and Steel products falling under Chapter 73 inasmuch as these items are not specified goods under Rule 57Q of erstwhile Central Excise Rules 1944 and are used as structural support to plant and machinery - Held that:- The grievance of the Revenue is that many of the goods are not specified for capital goods under Rule 57Q during the relevant period. However, the substantial question of law raised is whether the Tribunal is correct in allowing MODVAT credit in respect of iron and steel products falling under Chapter 73 which are used as structural support to plant and machinery. The said question was considered by us in CMA No.1265 of 2014 by order dated 10.7.2014. Reliance was placed in Rajasthan Spinning and Weaving Mills Limited cited supra, wherein the Apex Court has applied the user test in a case of M.S.Angles, Beams and Channels used in the erection of machineries and held that it would become component of the same. Therefore, we are of the considered view that credit cannot be denied on the ground that the goods are not covered under the definition of capital goods under Rule 57Q as it stood before 16.3.1995. Following decision of Commissioner of Central Excise, Jaipur vs Rajasthan Spinning and Weavinig Mills Ltd [2010 (7) TMI 12 - SUPREME COURT OF INDIA] - Decided against Revenue.
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