TMI Blog1998 (5) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... hotometer and its eligibility to Modvat credit under Rule 57Q of the Central Excise Rules, 1944. 2. Shri S. Murugandi, the learned DR appearing for the Revenue reiterated the grounds of appeal and stated that in the impugned order the Collector (Appeals) had held that interpretation of Rule 57Q involve reading in harmony of Rule 57-S of the Central Excise Rules. He submitted that each rule is independent in itself and therefore there was no need to take the assistance of Rule 57-S while interpreting Rule 57Q as held by the Tribunal in the case of CCE v. Velathal Spinning Mills Pvt. Ltd. in the Final Order No. 646/96, dated 16-4-1996 passed by this very Tribunal. 3. Shri Vijayaraghavan, learned Consultant for the respondent M/s. Hydro S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture viewed holistically, then it would qualify for the Modvat credit, though having not been directly used in the process of manufacture. In the present case, Spectrophotometer is used in an operation which is integrally to maintain the quality of the finished product as acceptable in the market. Therefore, the same principle is to apply to the facts of this case. He further cited the decision in the case of Grasim Cements reported in 1997 (96) E.L.T. 354 (Tribunal) wherein the Tribunal held that similar measuring and testing instruments are eligible for the benefit of Modvat credit under Rule 57Q. 4. I have considered the submissions made by both the sides with respect to the item Spectrophotometer. I find that the decision of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es spares of the DCS which does not play any direct role in the manufacturing process, therefore, the benefit of Modvat credit should be denied. In support of their plea, the Revenue cited the decision of the Tribunal in the case of Velathal Spinning Mills (supra). 7. Shri J. Sankararaman, the learned Counsel for the respondents argued that the item DCS itself has been allowed Modvat credit as a capital goods under Rule 57Q in the case of Associated Cements v. CCE reported in 1998 (97) E.L.T. 379 (Tribunal), para 5(3). He submitted in the present case when the main item viz. DCS itself has been held to be capital goods eligible for the benefit of Modvat credit, therefore, the safety barriers which is a component of the main item would als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed is worm wheel and worm shaft which is a component of a conveyor system for carrying sugar bags filled with sugar to the stitching machine. 10. Heard Shri S. Murugandi, the learned DR who argued that the item in question is used in the conveyor belt. Since the conveyor system is used for carrying the item in the manufacturing process, therefore it was not directly participating in the manufacturing process of sugar. In support of his argument, he cited the decision of this Tribunal in the case of Velathal Spinning Mills. 11. Heard Shri J. Sankararaman, learned Counsel for the respondents submitted that the item conveyor belt itself was held to qualify for the benefit of Modvat credit as per Rule 57Q as capital goods in the case of Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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