TMI Blog2001 (10) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... eal against the order of adjudication to the Commissioner (Appeals). The lower appellate authority rejected the Revenue s appeals. Hence the present appeal of the Revenue before the Tribunal. 2. The goods in respect of which Modvat credit was allowed to the present respondents by both the lower authorities are listed below :- (i) Cable Glands (ii) Switches (iii) Electrical Spares (iv) Senior Proximity Switch (v) Static Converter (vi) Pipe fitting. 3. The adjudicating authority has noted the uses of the above items. These uses, which have not been controverted by the Revenue in the present appeal, are as follows :- (i) Cable Glands - used to connect cable to machinery and termina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-96, the respondents will not be entitled to the benefit of the said Notification. As regards the reliance placed by the lower appellate authority on the Tribunal s Larger Bench decision in Jawahar Mills (supra), the appellants submits that the Department has filed Special Leave Petitions against that decision of the Larger Bench as well as subsequent decisions rendered against the Revenue by the Tribunal by relying on the Larger Bench decision. The appellant apparently means to say that the Larger Bench decision has no precedent value for the purpose of this case. 5. I have heard both sides. 6. Ld. JDR, Sh. V.K. Verma has reiterated the grounds of the Revenue s appeal. Ld. Counsel for the respondents, Sh. Nand Kishore submits that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in question as noted by the adjudicating authority. The main ground raised in this appeal appears to be that, for any capital goods to be held to be eligible for Modvat credit under Rule 57Q, it should be established that the goods have a direct nexus to the process of manufacture. It is this ground which has been pressed before me by ld. DR. In this connection, I find that cable glands which are admittedly used to connect the power cables to machinery actually carries out the function of transmitting electricity to the manufacturing plant. Any capital goods which transmits electricity to a power-driven manufacturing plant has to be held to have direct nexus to the process of manufacture. Hence the cable glands have satisfied the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eactors/agitators in the respondents factory have direct nexus to the chemical reactions resulting in the final products. Hence the pipe fittings are capital goods eligible for Modvat credit under Rule 57Q. The Tribunal s decision in the respondents own case cited by ld. advocate supports their claim in the present appeal, for Modvat credit on pipe fittings. 9. As regards electrical spares, I have put specific queries to the Counsel as to what they are. He has not been able to explain, nor could he confirm actual use of these goods in the factory during the material period. Goods which have not been used actually in the process of manufacture during the period of dispute will not be eligible for Modvat credit under Rule 57Q. If it can b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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