1997 (7) TMI 328

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....credit of duty paid on capital goods. The department alleged that on certain items the Modvat credit of duty as capital goods was not admissible and accordingly denied the benefit of Modvat credit on these items. Against this decision of the Collector, the appellants have filed the present appeal. The Collector disallowed the Modvat credit on specified goods as switches/starter/power transducer, spares for MOCB, cables, aluminium coil, chain pully, locking ring, speed controller, conveyor belt, level controller, thermo-couple, scrap roller and filter bags. The appellants grouped all the products in the following 4 categories :- (a) Items used in conveyor system like conveyor belt, switches, starter, power transducer. (b) Con....

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....submissions of the learned Consultant for the Respondents that a plant is also entitled to the benefit of Modvat credit under Rule 57Q. It is admitted that the cement plant of the Respondents is manufacturing cement which is a specified final product. It is also admitted by the appellants that conveyor belts are used in the cement plant. On the plain reading of the Clause (a) and (b) of Rule 57Q, there is, therefore, no doubt that conveyor belts would be entitled to the benefit of Modvat credit. Accordingly, I do not see any substance in the Appeals of the Revenue and they are dismissed as such. Consequently, the Stay Petitions are also dismissed"." 3.  The learned Counsel submits that insofar as control equipments like switches, st....

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....artment submits that the findings of the Collector are specific on each product and its use in the entire plant and machinery. He submits that since these items were not specifically covered as capital goods during the material period, therefore, the lower authorities have rightly denied them the Modvat credit. He reiterates the findings of the Collector as adjudicating officer. 7.  Heard the submissions of both sides. We find that conveyor system like conveyor belt is a material handling system. We also note that Hon'ble Patna High Court in case of TISCO had held that EOT crane which is a material handling equipment is a production or processing equipment. We note that it is material handling equipment, therefore, it is a part of p....