TMI Blog1997 (9) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... Helical Gear // Coupling Tyre // Screen Drum Assembly // Proportioning System / Group rate control system // Assembly of outlet conc / inlet conc / plain mill head / Assembly of drive shaft pinion // Solenoid valve / Grinding Media Balls cutler Diaphragm segment / Hard steel lining plate / Clinker // Gypsum-Pozzalana weigh-feeder. Modvat credit in respect of other goods in RG 23C Part I during the month of April, 1994 to August, 1994 is disallowed. Credit wrongly utilised, if any, should be recovered forthwith from the noticee under Rule 57U of the Central Excise Rules, 1944. 2. The facts of the case in brief are that the Appellant manufactures cement. They claimed Modvat credit on certain items claiming them to be capital goods. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l with the items specifically hereunder : A. Fire Bricks and Refractories, Lining Plate/liners. Fire bricks are used in kiln and its auxiliary units. Bricklining is essential for the Kiln operation and fire bricks are lined inside the kiln. The ld. Counsel submitted that their case is covered by the decision of this Tribunal in the case of Rathi Ispat Limited reported in 1997 (93) E.L.T. 532 and also in the case of Nova Udyog Limited reported in 1996 (88) E.L.T. 532. He submitted that this Tribunal had held that Modvat credit is not restricted to machinery which brings about changes but is also available for parts, accessories of machinery/appliances used for manufacture of the final product. We have considered the submissions. We have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FFCO v. Collector, Ahmedabad reported in 1996 (86) E.L.T. 177 held that pollution control apparatus/devices used in a plant are to be treated as part and parcel of the manufacturing process for production or the end product. Having regard to this ruling of the Apex Court, we hold that Dust Collecting Bags/Filter Bags are part and parcel of the manufacturing process of cement and, therefore, are eligible to the benefit of Modvat credit as capital goods under Rule 57Q. E. Fibre Bulk Explaining the function of this item, the ld. Counsel submitted that Fibre bulk is used in clinker [cooler] for cooling down temperature of Hot clinker. The ld. Counsel submitted that cooling down the temperature of hot clinker is an important feature [of] man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the Tribunal in these cases held that Modvat credit on capital goods is available not only on machinery which brings about change, but also on parts and accessories of machinery or other appliances used in the manufacture of the final product. He also submitted that the same view was again expressed by the Tribunal in the case of Nova Udyog Limited. We have carefully considered the submissions of the ld. Counsel and agree with his contention. We hold that the above spares are capital goods and, therefore, are eligible for the benefit of Modvat credit under Rule 57Q. G. Electrical Machinery and Spares, including Control panel, Capacitor and Capacitor Bank, Cables Wire, Switch Gear, Resistance Grid/Liquid Rotor Resistance Cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eful consideration of the submissions made and the case law cited and relied upon by the Appellants, we hold that the above referred electrical equipment and spares thereof are capital goods and are eligible for Modvat credit under Rule 57Q of the Central Excise Rules, 1944. H. Instrument Spare and Tools including cutting Nozzle, Multimeter, Jack, Thermocouple The ld. Counsel submitted that the Tribunal in the case of M/s. Nova Udyog Limited and M/s. Modi Xerox Ltd. (supra) has held that Modvat credit is not restricted to machinery which brings about changes, but is also available on parts/accessories of machinery/appliances used for manufacture of the final product. We note that these are either tools or measuring equipments. Tools are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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