TMI Blog2000 (3) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... Gas Assembly, Acralite Resins/Hylak Resins, Bakelite Sheet and M. Seal on the ground that these are not capital goods and are not covered by the Explanation under Rule 57Q. 2. The appellants are engaged in the manufacture of Caustic Soda Flakes/Lye/Solid, Liquid Chlorine and Hydraulic Acid. During scrutiny of R.T.12 Returns filed by the appellants it was noticed that the assessee took Modvat credit in respect of certain capital goods which were considered to be neither machines, machinery, plant, equipment, apparatus, tools and appliances nor components, spare parts and accessories thereof used for producing or processing of goods or for bringing about any change in any substance for the manufacture of final products. It was also found th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rior to 16-3-95 as is evident from a number of judgments of the Tribunal. The judgments are CCE v. Navbharat Paper Mills reported in 1996 (86) E.L.T. 501, CCE v. R.K. Marbles Ltd. reported in 1997 (92) E.L.T. 276, Valley Abrasives Ltd. v. CCE reported in 1997 (91) E.L.T. 700 etc. 6. In so far as static converter is concerned ld. Counsel submits that static converters are treated as capital goods in the case of M/s. Lupin Laboratories Ltd. reported in 1999 (114) E.L.T. 867 (T) = 1998 (25) RLT 740 and therefore, there was no reason to disallow them Modvat credit on static converter. Regarding Conduit PVC Arm Cable ld. Counsel submits that these items are used for carrying current to various places in the plant and that their case was fully ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that so far as M. Seals are concerned, they are used for preventing leakage and thus are a part of the items/plant. Ld. Counsel therefore, prayed that the appeal may be allowed in respect of the above items. 10. Shri R.D. Negi, ld. DR submits that all these items have been considered as not capital goods as the case pertains to the period prior to 16-3-95. He submits that detailed findings have been rendered by the ld. Commissioner; that he reiterates those findings. 11. We have heard the rival submissions. We have perused the case law cited by the appellants. We find that S.E. Copper Wires, Transformer, Static Converter, Conduit PVC Arm Cable and Final Washing Assembly/ HCL Tail Gas Assembly are directly covered by one or the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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