TMI Blog2004 (6) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... tes to eligibility of capital goods credit in respect of cement and structural material TOR/Steel Bars and Transformer. 2. Shri Virag Gupta, learned D.R., submitted that M/s. L.G. Hotline CPT Ltd. manufacture colour picture tubes and avail of Modvat credit of the duty paid on capital goods under Rule 57Q of the Central Excise Rules, 1944; that the Modvat credit is not available in respect of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , learned Advocate, submitted that cement, TOR steel have been used in the foundation of the machine and the equipment and the main plant; that it has been held by the Tribunal in the case of United Phosphorus Ltd. v. CC CE, 2002 (150) E.L.T. 650 (Tri.) that Rule 57Q does not provide that credit is not available, if the goods are used in the manufacture of goods which become immovable property; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t transformer below 75 KVA is eligible for Modvat credit as it is used for producing or processing the goods in the factory; that the mere fact that clause (d) of Explanation to Rule 57Q refers to transformers of capacity exceeding 75 KVA does not mean that the goods covered by clause (a) of Explanation are excluded from the definition of capital goods. 4. We have considered the submissions of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of conveyors. The definition of the capital goods as interpreted by the Hon'ble Supreme Court in the case of Jawahar Mills Ltd. makes it clear that these items which are used in the foundation of machines and equipments or for installation of conveyors are not capital goods as these are neither machine, machinery, etc. nor parts or components of the machine, machinery etc. The foundation work in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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