TMI Blog1997 (8) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of Modvat credit in respect of Plain plates, Electrical items, M.S. Angles, Welding Electrodes. 2. The learned lower authority after taking into consideration the uses of these items in the appellants factory has held that the benefit of Modvat credit in terms of Rule 57Q or under Rule 57A would not be available. The use of these items as set out under the learned lower authority s order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce purposes. These items are used as parts for the equipment or apparatus and as such, they rightly fall under Explanation 1(b) under Rule 57Q of the Central Excise Rules, 1944. Since they are in the nature of parts and accessories of the capital equipment mentioned under Explanation 1(a) of the same Rule, the Appellants submit that they are eligible for the Modvat credit which may kindly be allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in plates in respect of which credit of Rs. 1,827/- and Rs. 4,523/- is taken are used in the factory for maintenance purpose of the ARC furnace. The ARC furnace is a part of the plant and as such, these goods are covered under Explanation 1(b) of Rule 57Q of the Central Excise Rules, 1944. 8. ARC Furnace - The Appellants submit that the ARC Furnace is an equipment and also a part of the plant an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in question pass the master of the definition of the capital goods under Rule 57Q. As set out in the grounds of appeal, the items in question cannot be taken to be part or accessories of any one of the items which are set out as capital goods in terms of definition of capital goods as set out under Rule 57Q. The learned lower authority has rightly held that the Modvat would not be available and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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