TaxTMI 
TaxTMI 
1997 (7) TMI 367
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.... that is on cement and steel structure was denied on the ground that it does not come under the definition of capital goods under Rule 57Q of Central Excise Rules, 1944. 2. The appellants are setting up a Blast furnace in its integrated steel plant for production of pig iron. The appellants took the benefit of Modvat credit on capital goods, in respect of cement and steel structure used in erection and fabrication of blast furnace under Rule 57Q of Central Excise Rules, 1944. Show cause notice was issued on the ground that cement and steel structure are not directly related in manufacture of final product and also are not included as capital goods as defined under Rule 57Q of the Central Excise Rules, 1944. After adjudication the ad....
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....orporation Limited v. Commissioner of Commercial Taxes, Bihar and Others reported in 1965 STC Vol. XVI Page 259. He submits that the Honourable Supreme Court in this case held that in a case where a dealer is engaged both in mining operations and in the manufacturing process - the two processes being interdependent - it would be impossible to exclude vehicles which are used for removing from the place where the mining operations are concluded to the factory where the manufacturing process starts. It appears that the process of mining ore and manufacture with the aid of ore copper goods is an integral process and there would be no ground for an exclusion from the vehicles those which are used for removing goods to the factory after mining op....
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....relied upon the decision of the Honourable Supreme Court in the case of Collector of Central Excise v. Eastend Paper Industries Limited [1989 (43) E.L.T. 201 (S.C.)] where the Honourable Supreme Court held that component parts and raw material includes anything that enters into and form part of the manufacturing process or is required to make the article marketable must be deemed to be raw material or component part of the end product and must be deemed to have been used in completion or manufacture of the end product. In these circumstances, the learned Counsel submits that the cement and steel structure used in erection/fabrication of the blast furnace is covered under the provisions of Rule 57Q of the Central Excise Rules, 1944. 4.&em....
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....the manufacture of final products in any place in India, shall be restricted to the extent of duty which is equal to the additional duty leviable on like goods under section 3 of the Customs Tariff Act, 1975 (51 of 1975) equivalent to the duty of excise paid on such capital goods. Explanation - For the purpose of this section, - (1) "capital goods " means - (a) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products; (b) components, spare parts and accessories of the aforesaid machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid p....