Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2006 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (5) TMI 303 - AT - Central ExciseCenvat/Modvat credit - Capital goods or not - goods used for RCC foundation for embedding machinery, were used in civil construction work - Dumpers and Static road rollers with accessories were being used in the mine and not within the factory of production, for the manufacture of final product. Angles - Joists - Thermo Mech Treated bars - Plain plates - Tor Steel - Rebar coils - Channel - Cement - Steel wire - HELD THAT:- The word ‘plant’ occuring in this Clause cannot therefore, include any plant which cannot be described as goods and is some immovable property. Therefore, foundation on which the machinery is to be fixed would not, be by itself, plant within the meaning of the said word as it occurs in clause (a) of Explanation 1 to Rule 57Q(1). Therefore, so far as these items are concerned, the learned Commissioner (Appeals) has rightly held that these cannot be treated as capital goods within the meaning of Clause (a) to Explanation I to Rule 57Q(1) and, therefore, no Modvat credit would be admissible in respect of these goods. The contrary contentions raised by the assessee-appellant cannot therefore be accepted. Switch boards and Panels - Cables - Industrial valves - Digital weight indicator - Preheating cyclone ducts - Calciner and Kiln feed - Surface Miner - HELD THAT:- This Tribunal in GRASIM CEMENT VERSUS COMMISSIONER OF CENTRAL EXCISE, RAIPUR [1997 (8) TMI 209 - CEGAT, NEW DELHI] held that “Switch boards/panels being devices for regulating electric supply, were accessories in the form of “capital goods”, essential for proper working of machines and for production of goods and, therefore, Modvat credit was admissible in respect thereof under Rule 57Q of the Rules - Even for Wires and Cables, relying upon the earlier decision in COLLECTOR OF CENTRAL EXCISE, MEERUT VERSUS NOVA UDYOG LTD. [1996 (4) TMI 303 - CEGAT, NEW DELHI], it has been held that they were included in the definition of “capital goods” under the Explanation to Rule 57Q. Insofar as these items are concerned, it can hardly be disputed that they fall within the meaning of “capital goods” for the purpose of Modvat credit. Micro Generating Sets - HELD THAT:- Micro Generating set (item No. 11), used in the factory of the manufacturer continued to remain in clause (c) of Explanation 1. No distinction is sought to be urged between generating sets as included in clause (c) and electric generating sets, which also would be generating sets. Therefore, while clause (d)(v) specified electric generating sets of output exceeding 75 KVA, no such restriction is attached to generating sets in clause (c). It was also urged that while substituting clause (d) in Explanation 1 and specifying electric generating sets of output exceeding 75 KVA the necessity to omit generating sets from clause (c) might have been overlooked. Surface Miner - HELD THAT:- The Commissioner (Appeals) is hereby directed to consider whether the said capital goods were used in a captive mine of the assessee. Static Road roller with accessories - Hindustan 1025 dumpers - Diesel engine driven welding set - HELD THAT:- The matter is remanded to the Commissioner (Appeals) to consider whether these capital goods were used in the captive mines of the assessee which constituted one integral unit together with the cement factory of the assessee and whether mining area was a part of the factory premises of the assessee as per the ground plan and the Certificate of Registration as urged by the assessee. Appeal allowed in part and part matter on remand.
|