TaxTMI 
TaxTMI 
1998 (4) TMI 292
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....was denied by the Assistant Commissioner on a number of items. 2. On appeal, Commissioner (Appeals) allowed the credit in respect of the few and denied on the balance. 3. Learned Advocate, Shri S.N.S. Mahapatra for the appellant firm made his submissions in respect of each of the items involved in the present appeal. The same were countered by the learned SDR, Shri T. Premkumar for the Revenue. 4. I propose to take up each item separately as follows : (a) High Pressure Cleaning Machine : This is a machine essentially a supporting equipment, for Payloader/Tipper to keep them in perfect operating condition. The Payloaders and Tippers are involved for feeding raw materials, viz. coal, iron ore and dolomite for p....
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....a fit condition. I fully agree with the submission of the learned SDR that Rule 57Q in contradistinction to the expression used in Rule 57A, does not use such a wide expression. The wording of Rule 57Q is such as would require a closer nexus between the capital goods used by a manufacturer in his factory and the resultant final product than that required under Rule 57A. This has been so held by the Tribunal in the case of J.K. Synthetics Ltd. v. Commissioner of Central Excise, Jaipur reported in 1996 (88) E.L.T. 785 (T). I also note that in an another decision, the South Regional Bench in the case of J.K. Pharma Chem. Ltd. v. Commissioner of Central Excise, Tiruchirapalli, reported in 1998 (102) E.L.T. 488 (Tribunal) = 1997 (21) RLT 868 (T)....
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....nce, in this connection, has been placed by them on the decision of the Apex Court in the case of Collector of Central Excise v. Rajasthan State Chemical Works reported in 1991 (55) E.L.T. 444 wherein it has been held that the process of handling and lifting of certain chemicals with the aid of power was an integral part of the process of manufacture. 10. The Modvat credit has been denied by the authorities below on the ground that these are spare parts of slurry pumps which are used for disposal of sludge and as such, the same are used for maintenance purposes. However, I observe that removal of sludge is a continuous automatic process and is required for the proper function of the plant. In the case of Modi Alkalies and Chemicals ....
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....e above decision and following the same, I hold that testing of the in-process material is a process for the production of the goods and the Digital Temperature Controller with Indicator is entitled to the Modvat credit, inasmuch as the same is used for the proximate analysis test done for the coal in the muffle furnace to find out the percentage of ash, fixed carbon and volatile matter in the coal, loss of ignition in dolomite and loss of ignition of iron ore. 12. Trimmer Card AX-03 : This is a spare part of the Thyrister Drive, which is an integral part of the set-up responsible for operation of the kiln, where final product is processed. As per the appellants, for operation of the motor responsible for rotation of the kiln, the D....
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....are all spare parts of the Thyrister. My observation and finding in respect of the Trimmer Card which is also a spare part of the Thyrister Drive, clearly apply to the said item. Accordingly, I allow the Modvat credit on the same. 14. Pugmill Assembly : These are pollution control equipments installed in the raw materials circuit and finished product circuit to help in the continuous production of the finished product. The Pugmill Assembly is a part of the dedusting system whose ducts are provided in the feed-end and discharge-end of the conveyors, vibratory screen hoods and covers. The dust collected by the dedusting units is passed through the Pugmill Assembly and discharged to a pit in wet condition to avoid atmospheric pollution....
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.... 57Q. 16. Chart Drive Belt for MOD-30 : This is a part of the MOD-30 equipment, which displays and prints, the process parameters such as temperature, pressure and flow inside the kiln. Moreover, through the MOD-30 equipment, the process parameters are also controlled for manufacture of the final product. As per the appellant firm, the final product cannot be processed without the said equipment and as such, the same is required to be directly connected with the manufacture of the final product. The Department has denied the benefit to hold that the said Chart Drive is not used for processing of the final product. Referring to the decision of the Tribunal in the case of Modi Alkalies & Chemicals reported in 1996 (88) E.L.T. 555 (Tri....