1991 (2) TMI 257

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....er : "On going through the above submission, I find that the usage of chemicals is more or less akin to the usage of Rust Preventive oil, which the lower authority has considered as an input, equating it to paint. While the anti-rust preventive oil is used to keep the fully manufactured bearings free from rust, the chemicals are used during the course of manufacture of Bearing themselves. The chemicals are claimed to constitute a plated overlay on bearings, which is nothing but equivalent to quoting with paint. Their usage over a period of time is of no consequence. Therefore, chemicals can hardly be termed as "Capital Goods" and equated to surface grinders. Moreover, the term "capital goods" would apply on lay to "goods" capable of prod....

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....it in terms of Rule 57A." 3. The learned SDR reiterated the grounds of appeal. 4. The Respondents have cited the following case laws in support of the order of the lower appellate authority: (1) 1990 (48) E.L.T. 283 (Tribunal) in the case of Cominco Binani Zinc Ltd. v. Collector of Central Excise. (2) 1990 (50) E.L.T. 248. 5. We observe that the items in question are anti-rust oil and chemicals used for electroplating purposes. So far as anti-rust oil is concerned, the original authority has held that the same is eligible for MODVAT Credit. So far as the chemicals are concerned, these are admittedly used in the electroplating process and get consumed in the electrolysing bath and these as has been explained by the learned Col....

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....t is being denied are specifically included in the excluded category of items, MODVAT credit cannot be denied. In the present case as we have stated the Revenue wants the meaning of these terms to stretched wants the Hydrochloric Acid has to be treated as a tool as the functions it performs are likened to that of a tool. This, we are of the view that, is not the intention of the Legislature as no artificial meaning can be assigned to the words used in the Rule 57A, wording used does not admit of such an interpretation. Going by the plain meaning of the items in the excluded category, we hold that the plea of the learned Collector is not maintainable. As it is we observe this Tribunal in the case of Cominco Binani Zinc Ltd v. Collector of Ce....