TMI Blog1997 (7) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... d that it does not come under the definition of capital goods under Rule 57Q of Central Excise Rules, 1944. 2. The appellants are setting up a Blast furnace in its integrated steel plant for production of pig iron. The appellants took the benefit of Modvat credit on capital goods, in respect of cement and steel structure used in erection and fabrication of blast furnace under Rule 57Q of Central Excise Rules, 1944. Show cause notice was issued on the ground that cement and steel structure are not directly related in manufacture of final product and also are not included as capital goods as defined under Rule 57Q of the Central Excise Rules, 1944. After adjudication the adjudicating authority held that cement and steel structure are not pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eported in 1965 STC Vol. XVI Page 259. He submits that the Honourable Supreme Court in this case held that in a case where a dealer is engaged both in mining operations and in the manufacturing process - the two processes being interdependent - it would be impossible to exclude vehicles which are used for removing from the place where the mining operations are concluded to the factory where the manufacturing process starts. It appears that the process of mining ore and manufacture with the aid of ore copper goods is an integral process and there would be no ground for an exclusion from the vehicles those which are used for removing goods to the factory after mining operations are concluded. Nor is there any ground for excluding locomotives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llector of Central Excise v. Eastend Paper Industries Limited [1989 (43) E.L.T. 201 (S.C.)] where the Honourable Supreme Court held that component parts and raw material includes anything that enters into and form part of the manufacturing process or is required to make the article marketable must be deemed to be raw material or component part of the end product and must be deemed to have been used in completion or manufacture of the end product. In these circumstances, the learned Counsel submits that the cement and steel structure used in erection/fabrication of the blast furnace is covered under the provisions of Rule 57Q of the Central Excise Rules, 1944. 4. Shri Y.R. Kilania, JDR appearing on behalf of the respondent submits that cem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is equal to the additional duty leviable on like goods under section 3 of the Customs Tariff Act, 1975 (51 of 1975) equivalent to the duty of excise paid on such capital goods. Explanation - For the purpose of this section, - (1) capital goods means - (a) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products; (b) components, spare parts and accessories of the aforesaid machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose; and (c) moulds and dies, generating sets and weigh-bridges used in the factory of the manufacturer. (2) Specifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nging about any change in any substance for the manufacture of final products. The argument of the appellants that cement and steel structure are the part of the blast furnace which is a plant in itself is not acceptable in view of the decision of the Honourable Supreme Court in the case of M/s. J.K. Cotton Spinning and Weaving Mills Co. Limited (supra) where the Honourable Supreme Court held that building material used as raw material for construction of plant cannot be said to be used as plant in the manufacture of goods. The cement and steel structure used in erection of the blast furnace is a building material. In view of the above discussion, we do not find any infirmity in the impugned order and the appeal is dismissed. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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