1999 (8) TMI 275

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....dit on boiler material is concerned; the same is not governed by the provision of Rule 57Q. He submits that boiler may be a machine and may under specific circumstances qualify for consideration of Modvat credit under Rule 57Q but the raw materials for manufacture of boiler can not be construed as machines or parts and equipment of machines. He, therefore, submits that the Commissioner (Appeals) has erred in allowing Modvat credit on boiler material. 3. Regarding pipe fittings and pipes ld. DR submits that there is no nexus between the machines and pipe fittings and pipes, Modvat credit as capital goods is available only on machines, plants etc. Pipe fittings and pipes cannot be termed as machines and plants etc. About turbine ld....

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.... which is supplied to the plant for generation of electricity. He submits that since boiler is capital goods and the materials are inputs. In terms of Rule 57D(2), the inputs become entitled to Modvat credit of capital goods. He, therefore, submits that in terms of this judgment of the Tribunal the respondents were entitled to Modvat credit on the inputs which went into the manufacture of boiler. He, therefore, submits that the ld. Commissioner (Appeals) had rightly held so. On pipe fittings and pipes ld. Counsel submits that the Tribunal had consistently been holding that pipe fittings and pipes which are used in the process of manufacture of the final product become eligible for Modvat credit. He submits that in the instant case pipes ....