TMI Blog1996 (10) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... two appeals are being disposed of by this common order inasmuch as the issue involved for determination in both the appeals is the same. The issue is whether gantry crane, transformers and trolly are capital goods and are eligible for inputs duty credit under the Modvat scheme. The Department alleged that these items are used for moving the raw materials from one place to the other and do not par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving the inputs from one place to the other and therefore they were not capital goods; and that gantry cranes are not used for producing or processing of any goods or bringing about any change in any substance for the manufacture of final product; that transformers merely change electric voltage and vice-versa therefore was not and cannot be said to be used in producing or processing of any goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als, semi-finished goods etc. 4. The ld. Counsel submits that trolly used by the respondents should similarly get the benefit of Rule 57Q in as much as trolly is used by the respondents in their factory for handling raw materials, semi-finished goods etc. In support of his contentions the ld. Counsel cited and relied upon the judgment of the Apex Court in the case of Rajasthan Chemical Works - 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al may be rejected. 5. Heard the submissions of both sides. I find that the Apex Court in the case of Rajasthan State Chemical Works cited (supra) held that transfer of raw materials to the reacting vessel is a preliminary operation but it is part of a continuous process but for which the manufacture would be impossible. Further the Apex Court observed that handling of the raw materials for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffect from 16-3-1995 if transformers are capital goods with effect from 16-3-1995 it cannot be said that they were not capital goods before that date. Transformers are capital goods was considered by the Tribunal in the case of Nav Bharat Paper Mills cited above it was held that transformers were capital goods and were entitled to the benefit of Rule 57Q. I do not see any reason to hold contrary v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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