TMI Blog1998 (7) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... Hetro Fit being part of the weigh bridge is also entitled to Modvat credit. But steel for molasses tank cannot be called a capital goods under Rule 57Q and so Modvat credit shall not be available on them. Appeal is thus allowed partly. The adjudicating authority is directed to pass proper speaking order in future after following principles of natural justice. 2. The facts, briefly stated, are that the Appellants are manufacturers of Sugar. They filed a declaration, claiming Modvat credit on steel sheets for molasses tank. The Department alleged that Modvat credit can be allowed only in respect of goods as covered by the Explanation 1(a), (b) and (c) provided under Rule 57Q and since steel sheets for molasses tanks are not covered by the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 machines has to be regarded as Plant. The ld. Counsel further submitted that in the case of CCE v. Rajasthan State Chemical Works [1991 (55) E.L.T. 444], the Apex Court held that the process of handling/lifting/pumping/transfer/transportation of raw materials is also a process in or in relation to m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machine. It is a part of the civil work required for erecting the machinery. These materials cannot also be construed to be component parts of the plant, because these are constructional materials required for erecting the building or for standing the machinery on a concrete foundation. Under Rule 57Q of the Central Excise Rules, 1944, Capital Goods such as machine, machinery, tools etc. required for producing or processing of the goods including components and accessories therefor are allowed Modvat credit. The concrete foundation for erecting a machinery can neither be construed to be a component or accessory nor such a foundation be construed to produce or process the goods. In this prima facie view of the matter, we find that the balanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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