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2005 (9) TMI 171 - AT - Central ExciseCenvat/Modvat - Capital goods - goods covered under the explanation to Rule 57Q - installation and erection of machinery in plant - HELD THAT:- As per the appellants contention raised before the Commissioner it appears that the structural items are clearly linked with the machinery that is used in the production of final products. Thus following the decision of the Tribunal in United Phosphorous [2001 (8) TMI 265 - CEGAT, MUMBAI] and Lloyds Steel [2004 (6) TMI 627 - CESTAT, MUMBAI], we hold that Modvat credit is admissible on the structural items which are so used as to make the machinery vibration free. We observe that over the years Rule 57Q and the explanation thereto has been interpreted liberally to take even the structurals in the ambit of capital goods provided that such structurals are closely associated with the machinery installed in a plant. We are therefore of the opinion that the impugned goods are eligible for Modvat credit under Rule 57Q as it existed. The appeal is allowed. The order of the Commissioner is set aside.
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