1999 (11) TMI 686

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....odvat credit under Rules 57-A and 57-Q of the Central Excise Rules, 1944. The Revenue was of the view that credit was not admissible on electrical items such as fuse, relay control panels, switches, distribution boxes, electric motors, etc. and items such as brass casting articles, MS pipes, tubes, copper pipes, base plate, etc. on the ground that the above mentioned items did not have a direct nexus with producing, processing or bringing about any change in substance in the manufacture of finished goods, and hence not covered by the definition of capital goods under Rule 57-Q. 2. Therefore, show cause notices were issued covering the period from April, 1995 to November, 1995 and January and February, 1996 proposing recovery of wron....

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....oes not rebut the contention that these are items in dispute in the present appeals. Therefore, we will consider eligibility of the above 13 items to the benefit of capital goods credit. 4. We find that items at Sl. Nos. 1 to 6 are covered by the decision of the Tribunal in the case of Grasim Cement v. Commissioner of Central Excise reported in [1997 (96) E.L.T. 354] and Jawahar Mills reported in [1999 (108) E.L.T. 47] in addition to other decisions. Therefore, we see no reason to interfere with the finding of the Commissioner (Appeals) on these items and accordingly confirm his order relating to these items. As far as item No. 7 is concerned, it is covered by the decision of the Tribunal in the case of Lupin Laboratories v. Commiss....

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....re and use of this item, we hold that it is used for producing or processing of goods and is therefore, entitled to capital goods credit. 7. Item at Sl. No. 9 i.e. Heat tracers are explained as resistance wires wrapped across any pipeline to heat up the oil inside the line; that the oil may block the pipeline if it is not heated up to a particular temperature and since the oil blockage will stop thereby affecting the production of final product, providing heat tracers to the furnace oil line is very essential. The above mentioned use has not been disputed by the Department. Having regard to the use as explained; we hold that heat tracers are covered by the definition of capital goods and are hence entitled to credit in terms of Rule....