TaxTMI 
TaxTMI 
1998 (9) TMI 253
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....tapur, had disallowed the Modvat credit and had imposed a penalty of Rs. 47,925/-. 2. The matter was posted for hearing on 13-7-1998 when Shri Bipin Garg, Advocate, appearing for the appellants submitted that the MS Plates and Channels were the capital goods. Under Rule 57Q of the Rules, they were used in the manufactured of structure which was covered by the expression `Plant' and that the M.S. Plates and Channels thus were components of the plant. As the plant was to be used for manufacturing the sugar, he submitted that the M.S. Plates and Channels were the eligible inputs for the purposes of Modvat credit. 3. In reply, Shri T.A. Arunachalam, JDR referred to the explanation under Rule 57Q and submitted that the M.S. Plates an....
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....n appended to Rule 57Q of the Central Excise Rules, 1944." 5. The appellants had admitted that MS Plates and Channels were used for "structural work" carried on for the expansion of the factory. The Asstt. Commissioner of Central Excise, Sitapur, had observed that these plates and channels were used for supporting structure and were in no way used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product in the sugar factory. Relying upon the Tribunal's decision in the case of M/s. Indo Rama Synthetics (India) Ltd. v. CCE, Nagpur (supra), he observed that the structural work made by the party from MS Plates and Channels was for the expansion of the sugar factory and....
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....sed for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products". The Legislature had given a definite definition for the term "capital goods" for the purposes of the above Section AAAA of Chapter V of the Rules and no general meaning could be assigned to this expression in view of the specific meaning given to it for the purposes of the credit of duty paid on such goods used by the manufacturer of specified final products. The use of the word `means' indicates that the definition is a hard and fast definition and no other meaning expanded or restricted could be assigned to this expression `capital goods' than is specifically put down in the said meaning. The definition o....
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....995 and even in August, 1996 the work on the manufacture of the structure for whose purposes the M.S. Plates and Channels had been brought was still going on. 8. The appellants had argued that the M.S. Plates and Channels in themselves were equipment. They have observed as under : "indirectly equipping the machine without which the use of machine for producing and processing will be incomplete". Equipment means, one or more assemblies capable of performing a complete function. (refer para 21 of Union Carbide (India) Ltd. & Ors. v. CCE, Calcutta-I [and] Ors. - 1996 (88) E.L.T. 613 (T) = 1996 (66) ECR 172 (Tribunal). The M.S. Plates and Channels were for fabricating structure. Structure was for expansion of the factory. There is nothing....
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....nt case is sugar etc. and the iron and steel is not the raw material for these products. This decision was rendered in different context. In the case of Vivek Alloys Ltd. v. CCE, Coimbatore - 1998 (98) E.L.T. 156 (Tribunal), it has been observed that the whole system of machine was to be regarded as plant. The structure was not a machine. Therefore, this decision is also not applicable to the facts of the present case. In the case of CCE v. Rajasthan State Chemical Works - 1991 (55) E.L.T. 444 (S.C.), the diesel pump sets were used to fill the pans with brine. It was an activity with the aid of power and that activity was in relation to the manufacture of the final products. The Supreme Court observed that if any operation in the course of ....