TMI Blog2003 (8) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... en disallowed for the same period in respect of Supporting Structure. In Appeal No. 1967/2002, the relevant period is August/September, 1996, for which Modvat credit has been disallowed on Coil used in the Mill and the Kiln as also on various capital goods used in the mines. In Appeal No. 2012/2002, the items in question are Monitors forming part of a Computer Control System and capital goods credit has been disallowed on the said item for the period July to September, 1999. In Appeal No. 2013, the relevant period is April to December, 2000, for which Modvat credit has been disallowed on three items namely (1) Steel sheets/plates (2) Steel structure, and (3) Asbestos rope. 2. Heard both the sides. The Counsel for the appellants reiterates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts that the working of the manufacturing plant was monitored and regulated through a Computer Control System, without which it was not possible or expedient to run the factory on a commercial scale. It is contended that the Monitors should be held to be a part of the plant. The Steel sheets/plates were used for repairs of various parts of the manufacturing plant; and the asbestos rope was used as a part of pipe fittings; these items also should be held to be eligible capital goods on account of their connection with the process of manufacture of cement. The DR reiterates the findings recorded in the impugned order. 3. I have carefully examined the submissions. There is no dispute of the fact that the MS tubes and pipes were used in the ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt has held that capital goods used in mines away from cement factory would not be eligible for Modvat credit under Rule 57-Q vide Jaypee Rewa Cement v. CCE, M.P. [2001 (133) E.L.T. 3 (S.C.)]. Hence the credit taken on such goods by the appellants has been rightly denied by the lower appellate authority. Again the Hon'ble Supreme Court has held various electrical items used in a factory to be eligible for Modvat credit under Rule 57Q vide C.C.E. v. Jawahar Mills Ltd. [2001 (132) E.L.T. 3 (S.C.)]. Hence the coils used in mill/kiln, being electrical items, qualify to be capital goods and the Modvat credit taken thereon is admissible to the appellants. Appeal No 1967/2002 is allowed to this limited extent. 6. Monitors of the computer control ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apter 85, Chapter 90, heading 68.02 and sub-heading 6801.10 of the First Schedule to the Central Excise Tariff Act, 1985; (ii) components, spares and accessories of the goods specified at (i) above; (iii) moulds and dies; (iv) refractories and refractory materials; (v) tubes and pipes and fittings thereof, used in the factory; and (vi) pollution control equipment used in the factory of the manufacturer of the final products." It has not been shown to me as to which of the above sub-clauses of the definition of "capital goods" attracts the items in question. The three items on which Modvat credit has been disallowed by the Commissioner (Appeals) are Steel sheets/plates, Steel structure and Asbestos rope. The S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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