1997 (1) TMI 362

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....rupuram (shortly the appellants) against the captioned order as above. They are aggrieved because the Assistant Commissioner has denied modvat credit on cables, conductors, electrical terminal kits and cable trays amounting to Rs. 60,24,829/- on the ground that these items cannot be treated as capital goods. The appellants have also filed a stay application. 2.  I have given my careful con....

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..... is not sufficient. The captive power plant is situated inside the factory premises and in built by using six generating sets each of 6 MW capacity and the power thus generated is drawn through cables and fed into various plants of the appellants. The appellants filed declarations under 57Q (d) (ix) accordingly for impugned items. A show cause notice was issued to them for denying the credit whic....

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....from certain other specified items. As per Rule 57Q read with Rule 57S, the capital goods used in the factory "in or in relation to" the manufacture of the final product would be eligible to credit. Though the words "in or in relation to" are not employed in the Rule 57Q, the same has to be taken as such by a harmonious reading of Rules 57Q and 57S, as held by the CEGAT in the case of M.M. Forging....