9911796707
TMI Blog1997 (7) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... he department alleged that on certain items the Modvat credit of duty as capital goods was not admissible and accordingly denied the benefit of Modvat credit on these items. Against this decision of the Collector, the appellants have filed the present appeal. The Collector disallowed the Modvat credit on specified goods as switches/starter/power transducer, spares for MOCB, cables, aluminium coil, chain pully, locking ring, speed controller, conveyor belt, level controller, thermo-couple, scrap roller and filter bags. The appellants grouped all the products in the following 4 categories :- (a) Items used in conveyor system like conveyor belt, switches, starter, power transducer. (b) Control equipments like switches, starter, pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents that a plant is also entitled to the benefit of Modvat credit under Rule 57Q. It is admitted that the cement plant of the Respondents is manufacturing cement which is a specified final product. It is also admitted by the appellants that conveyor belts are used in the cement plant. On the plain reading of the Clause (a) and (b) of Rule 57Q, there is, therefore, no doubt that conveyor belts would be entitled to the benefit of Modvat credit. Accordingly, I do not see any substance in the Appeals of the Revenue and they are dismissed as such. Consequently, the Stay Petitions are also dismissed"." 3. The learned Counsel submits that insofar as control equipments like switches, starters, power transducer, speed controller and level co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic on each product and its use in the entire plant and machinery. He submits that since these items were not specifically covered as capital goods during the material period, therefore, the lower authorities have rightly denied them the Modvat credit. He reiterates the findings of the Collector as adjudicating officer. 7. Heard the submissions of both sides. We find that conveyor system like conveyor belt is a material handling system. We also note that Hon'ble Patna High Court in case of TISCO had held that EOT crane which is a material handling equipment is a production or processing equipment. We note that it is material handling equipment, therefore, it is a part of plant and machinery which is used in the process of bringing abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in the manufacture of fertiliser and further held that Ammonia gas used in this process is also eligible for the benefit of exemption notification. Here, though we are not concerned with the exemption part, we are concerned with Pollution Control Equipment as part of plant and machinery and since the Pollution Control Equipment is an essential requirement being part of the plant and machinery, shall be admissible to the benefit of Modvat credit as capital goods. 11. In view of the above findings, the appellants shall be entitled to the Modvat credit of Rs. 7,04,553.47. 12. The impugned order is, therefore modified to the extent stated as above and the appeal is disposed of accordingly. Cross-objections are also disposed of in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
