TMI Blog1998 (10) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... corrosive in nature, hazardous and chemically poisonous. In support of his contention he relied upon Hawley s Condensed Chemical Dictionary in which it is mentioned that Hydrofluoric Acid is corrosive material and highly corrosive to skin. He said that therefore it has to be stored in a specially built tank because it has to be stored under specific temperature and certain pressure. In the market the tanks meant for Hydrofluoric Acid are specifically available and it cannot be stored in any other tanks. Unless the tanks installed in factory for the purpose of Hydrofluoric Acid the appellants cannot manufacture their finished goods and accordingly it should be considered as capital goods for the purpose of availing of Modvat credit. He subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quipment cannot function without a particular structure it should be considered as a part of the plant. He also placed reliance on the decision of the Supreme Court in the case of C.C.E. v. Rajasthan State Chemical Works reported in 1991 (55) E.L.T. 444 in which the Supreme Court came to the conclusion that process like handling, lifting, pumping and transportation of the raw-materials is also a process in or in relation to the manufacture if integrally connected with further operation leading to the manufacture of the goods. 3. Countering the arguments, Shri A.M. Tilak, ld. DR submitted that the definition of the capital goods as given in explanation to Rule 57Q is not an inclusive definition whereas the definition in Income Tax Act is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the manufacture of finished goods. He placed reliance on the decision reported in 1980 (126) I.T.R. 197 (Delhi). The relevant test to be applied is whether does the goods fulfil the purpose of the assessee. He also relied upon the Supreme Court judgment in the case of IFFCO v. U.O.I. - 1996 (86) E.L.T. 177 (S.C.) in which effluent plant was considered to be part of the manufacturing plant. Finally, he relied upon the decision in the case of Dabur India Ltd. v. C.C.E., Meerut, Order No. A-833/97-NB(SM), dated 14-10-1997 [1998 (98) E.L.T. 674 (Tribunal)] in which also the capital goods credit was allowed in respect of tanks. 5. I have considered the submissions made by both sides. It has been submitted that the storage tanks in questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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