TMI Blog2015 (9) TMI 932X X X X Extracts X X X X X X X X Extracts X X X X ..... n and steel structures manufactured and used captively in factory for installation of sugar manufacturing plant by Assessee can be classified as ''capital goods' under Rule 57Q of Rules, 1944. The Court held that provisions of Statute must be construed strictly and the Court neither should stretch the words nor add nor subtract words in order to bring in or include something therein. - both the items were part and parcel of machines, plants, equipments etc., used for producing and processing of goods, hence, were excluded specifically under Rule 57A, Explanation which excludes "machines, machinery, plant, equipment, apparatus, toots or appliances used for producing or processing of any goods or for bringing about any change in any substance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter referred to as CET Act, 1985 ). The Assessee claimed MODVET credit in respect to Synthetic Filter Cloth and Asbestos Mill Board treating the same to constitute inputs, in or in relation to manufacture of their final products. A declaration under Rule 57-G vide letter dated 6.2.1990 for availing credit of Excise duty paid on various inputs was made by Assessee and the said inputs included Synthetic Filter Cloth, the nature/function whereof was described by the Assessee as fabrication of process liquor. With regard to Asbestos Mill Board its nature/function was described as Furance/Pot insulation. 4. The Revenue took the view that these items are part of plant and machinery equipments, not liable to be treated as inputs in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such a way that without it final product cannot be manufactured in the form it is removed. The aforesaid two items, namely, Synthetic Filter Cloth and Asbestos Mill Board , according to Collector did not satisfy aforesaid requirement so as to qualify to be inputs entitling MODVAT Credit to the Assessee. 6. Describing functions of Synthetic Filter Cloth, Collector observed that this is a filtration media on rotary vaccum drum filter for filtering alumina trihyhdrate slurry to wash out solid organic impurities. The filter cloth on the filter unit is exposed to pressure and vaccum. It gets ruptured in the process necessitating replacement. It is a consumable item. The Synthetic Filter Cloth, therefore, is used to bring about change in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the said notification (hereinafter referred to as the specified duty ) paid on the goods used in or in relation to the manufacture of the said final products (hereinafter referred to as the inputs') and for utilising the credit so allowed towards payment of duty of excise leviable on the final products, whether under the Act or under any other Act, as may be specified in the said notification, subject to the provisions of this section and the conditions and restrictions that may be specified in the notification: Provided that the Central Government may specify the goods or classes of goods in respect of which the credit of specified duly may be restricted. Explanation:- For the pan poses of this rule, inputs include ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Court held that provisions of Statute must be construed strictly and the Court neither should stretch the words nor add nor subtract words in order to bring in or include something therein. 12. From the own claim of Assessee, it is clear that both the items were part and parcel of machines, plants, equipments etc., used for producing and processing of goods, hence, were excluded specifically under Rule 57A, Explanation which excludes machines, machinery, plant, equipment, apparatus, toots or appliances used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufacture of the final products . 13. In view of specific exclusion, we are clearly of the view that Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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