1998 (11) TMI 204

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....SDR, for the Respondent. [Order]. - This is an appeal against Order-in-Original No.196/95 (C), dated 31-8-1995 passed by Collector of Central Excise and Customs (Appeals) wherein duty demand involved was of Rs. 7,890/- in respect of Modvat availed under Rule 57Q for (a) Load cell used in Platform Weighing scale and (b) Capacitors used in electric motors and these were held to be wrongly avai....

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....a covered one and the relief prayed for are legally due to them. 4. Heard ld. SDR who cites the case of 1994 (70) E.L.T. 75 (Tribunal) wherein in the majority decision in the case of TELCO Ltd. it had been held measuring instruments and material handling equipments would not be eligible to Modvat credit as capital goods because they did not bring in substantive change in any substance. He ....

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....nies Ltd. as reported in 1998 (97) E.L.T. 379 (Tribunal), it has been held that static convertors used to regulate the speed on main drive in kiln etc. were eligible under capital goods. The analogy of this decision clearly applies in this case as it is not in dispute that the capacitor increases the speed of the electric motor concerned. 6.  I have considered the submissions made on both ....

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.... decisions noted above would be that when weighing machines are regarded as capital goods, parts and components thereof would also qualify for the same treatment. In view of this decision, the Load Cells in question are clearly eligible for Modvat credit under Rule 57Q. 7. As far as the question of capacitors is concerned, it is not disputed that they are affixed to the electric motors whi....