2000 (9) TMI 326

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.... Assistant Commissioner as per order dated 30-4-1998, which was, later on, upheld by the Commissioner (Appeals) as per order dated 25-7-1999. The present appeal is against the order of the Commissioner (Appeals). 2. Carefully examined the grounds of the appeal after perusal of the orders of the lower authorities and connected records. Heard the representative of the appellant-company, Shri N.D. Jain and JDR Shri Y.R. Kilania. 3. Shri Jain has submitted that the orders of the lower authorities are on grounds, some of which are beyond the scope of the show cause notice. The show-cause notice proposed to deny the Modvat credit on boiler on the ground that the final product namely woollen fabric was not covered under Rule 57Q fo....

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....he Assistant Commissioner, submits ld. Representative of the appellants. He has further prayed for setting aside the order of the lower appellate authority and allowing this appeal. He has also relied on the decision of the Tribunal in the case of CCE, Meerut v. Triveni Engg. Works [1997 (96) E.L.T. 655 (T)] in support of the submission that the capital goods in question was an integral part of the appellants' plant and therefore was covered by the expression 'capital goods' as per clause (a) under the Explanation to Rule 57Q. 4. Ld. JDR has reiterated the findings of the lower authorities. He has further submitted that the scope of certain notifications amending Rule 57Q from time to time is presently under consideration of the Ape....

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....f the factual basis for the finding. In this connection, it has been submitted on behalf of the appellants that the boiler in question was used for generation of steam which was, in turn, used in various stages of the processing of the fabrics after the powerloom stage of the manufacture. The fabrics coming out of the powerloom are washed with hot water. The hot water required for this purpose is obtained by heating water with the aid of steam. Subsequent to the washing of the fabrics is the milling stage, in which the required temperature is maintained by means of steam. In the subsequent stage of drying of the fabrics in the stenter also, steam is used for attaining the required high temperature. In this manner, steam is an essential ingr....