TMI Blog2002 (3) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... in para 5 of the impugned order which are extracted below : The disputed items on which capital goods credit has been disallowed are the following :- Spares for phoenix valve : (Sl. No. 1) (Rs. 29,430/-) Spares for power driven pumps : (Sl. Nos. 3 6) (Rs. 745/- Rs. 6211/-) Sleeved plug valve : (Sl. No. 5) (Rs. 7,171/-) Miscellaneous chemicals products carbon reschines rings : (Sl. No. 7) (Rs. 175/-) Process control instruments, panels, MAG flow tubs/transmitters (S1. No. 8) (Rs. 28,000/-) Spares for tuflin valves (Sl. No. 9) (Rs. 8,973/-) Tuflin PTFE sleeved plug valves (Sl. No. 10) (Rs. 6,481/-) Tuflin fully lined plug v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tegra and the Apex Court has already laid down the ratio as to how the explanation is required to be applied. The Tribunal in the above cited judgments have clearly noted that if the item is used in machinery and contribute to the production process and are required to be essential items for bringing into existence the final product then they satisfy the explanation (1)(b) of Rule 57Q. The Commissioner (Appeals) has seen the function of the item in question and have found that the item plays an important role in relation to the manufacture of the final product. The Apex Court and the Larger Bench explanation clearly apply to the facts of this case. Therefore I do not find any merit in Appeal No. E/820/2000 and the same is rejected. 5. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. I have heard ld. DR, Shri C. Mani who took me through the grounds and forcibly argued that the items have no relation for the manufacture of final product and they are used only in the excavation of lime stone in mines. However on being pointed out by the Bench that the issue is no longer res integra as the matter was considered by the Apex Court in the case of Jaypee Rewa Cement v. CCE as reported in 2001 (133) E.L.T. 3 (S.C.). Ld. DR pointed out that in the case of Shree Cements Ltd. as reported in 2001 (132) E.L.T. 254 have rejected the grant of benefit of dumper, sprag clutch, nylon tyre, hanger casting and bucket elevator used in mines and not covered by the definition of capital goods under erstwhile Rule 57Q of C.E. Rules. 8. Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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