2000 (3) TMI 558

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....credit on the following ten items :- (1) Battery 16,318.60 (2) Main Cable joining Control panel 200.00 (3) Packing, Set, Pin, Cross Chain Drive Assembly, Pin Replace 2,298.00 (4) Load Cell 1,030.00 (5) Union Assembly U Sleeve 740.00 (6) Morris 1 Ton Capacity Geared trolley 381.00 (7) Batteries 9,200.00 (8) Weighing Machine 1,990.00 (9) Weighing Machine parts 6,380.00 (10) Hydraulic Hand Pallet Truck, Electric Stradle Stacker 99,781.00   TOTAL 1,38,318.60 2. The order in appeal impugned allows Modvat credit on all the items noted above except Sl. 1, i.e. battery, whereon credit available has been denied. 3. Heard Shri M. Ku....

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....e applied is not any direct nexus as was held in the two citations relied upon by the Revenue noted above, but whether these goods are non-consumables but capital goods conveying sufficient durability and are covered by the term "Plant" in which the final goods are produced. He submits that these goods are akin in nature to the goods like wires, cables, control panels and their parts which were considered to be outside the purview of the term "consumables" as they were highly durable in nature, capable of being used for long periods and were necessary to operate the machines used in the production of final goods and therefore, fall within the definition of the term "Plant" under Rule 57Q. He, therefore, submits that the ratio of the said de....

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.... repair the electrical connectivity through the control panels for conveying power from power source to the machines which are used to produce the final goods, I find that each of this is not used in the nature of consumables but have reasonable life and are therefore, of un-questioned durability. In view of this, they are covered by the term "Plant" under Rule 57Q and accordingly, the ratio of the decision of the Tribunal in the case of Jawahar Mills (supra) would be applicable with respect to these items. In this decision, it was held that the date 16-3-1995 vis-a-vis the Notification noted above is irrelevant to the issue and the credit is to be allowed. Therefore, respectfully applying the ratio of thereof, I do not find any infirmity i....