2001 (8) TMI 607

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....ha Arun, SDR, for the Respondent. [Order]. - The issue relates to Modvat Credit. The representative appearing for the appellants submitted that the Modvat Credit is in respect of 68 Fairway Lamps. He said that Modvat Credit has been disallowed to the extent of Rs. 3,325/- on the ground that this article is on general use and cannot be said to be capital goods within the definition of explana....

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.... cables to be regarded as 'plant' being necessary for assessee to carry on his business and eligible for Modvat credit as capital goods. This view was confirmed by the Supreme Court upholding the decision of the Tribunal observing that the definition of the 'Capital Goods' is very wide and the language used in the explanation one of the Rules 157Q is very liberal as reported in 2001 (132) E.L.T. 3....

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....apital Goods' would depend upon the user. She contended that since the item namely 'Fairway Lamp' has not been used in the process of manufacture of the finished products namely tyre, there is no justification of allowing Modvat credit holding that the item is eligible 'Capital Goods' in terms of Rule 57Q of the Central Excise Rules. 3. On the other hand, the representative of appellants s....