TMI Blog1997 (12) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... cise, Hosur. 2. We have heard both the sides. 3. The appellant, engaged in the manufacture of Steel Ingots, was availing credit under Rule 57Q of the Central Excise Rules, 1944 in respect of various items claimed as inputs. The Show Cause Notice was issued stating that the some of the items in respect of which credit was taken are not eligible for credit under Rule 57Q and proposing demand in respect thereof. Though the appellant resisted the notice, the Asstt. Commissioner disallowed the credit in respect of Oxygen Lancing Pipe, Tor Steel, M.S. Rounds, M.S. Angles, C.I. Trumphet and Capacitors. In appeal, the Commissioner (Appeals), allowed the credit in respect of C.I. Trumphet and Capacitors and confirmed the rejection in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This was the definition as it stood at the relevant time. 6. Oxygen Tank and the Furnace can certainly be regarded as part of the plant. That being so, the Oxygen Lancing Pipe must be regarded as component of such plant, and has to be regarded as capital goods for the purpose of the rule. The assessee would be entitled to the benefit of the rules in regard to duty paid on Lancing Pipe. 7. Similar is the position with regard to C.I. Trumphet and Capacitors. The C.I. Trumphets are used to pour molten metal into the mould. Capacitors are used in Power Factory Equipment for regulating voltage on flow of power to the machines or other equipments. These have to be regarded as component parts of the Plant, manufacturing steel ingots and are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning also. The expression `Plant has been defined in Webster s Third New International Dictionary as Land, Building, machinery, apparatus and fixtures employed in carrying on trade or other business . The High Court took the view that since books also have been included in the meaning of Plant, it is clear that the Legislature intended to give a wide meaning to the above expression `Plant . In that view, the finding of the Tribunal was held to be correct. 11. In the course of the order, the High Court has referred to a decision of the Supreme Court and other decisions. The Supreme Court in the case of Taj Mahal Hotel - 1971 (82) ITR 44 (SC) referred to the wider meaning of the expression `Plant in the Webster s Dictionary and held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of final products. Considering the scheme of Rule 57Q, the definition in Explanation 1(a) of capital goods, as meaning machines, equipments, apparatus, tools, appliances used for producing or processing the goods etc., clearly indicate the intention of the rule making authority to give the wider meaning to the expression `plant but to give a narrower meaning which is suitable in the context. Plant , therefore, could be regarded as machine or group of machines fitted in such a manner as to serve the purpose of manufacturing any particular product, and the whole system of machine has to be regarded as Plant. 14. In this view, we are unable to agree that building in which the furnace is housed should be regarded as a Plant and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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