2002 (1) TMI 1036

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....eriod April to September, 1994. The 12 items of capital goods on which the Modvat credit of Rs. 4,07,774/- has been allowed by the lower appellate authority are named below :- (i)      Static Convertor (ii)     Spare Parts of Jaw Crusher (iii)    Spare Impeller (iv)    Rent/Leaf Spring (v)     Electric Fan (vi)    Electric Motor (vii)   ACC MON LC 80 (viii)  Centre Disc (ix)    Filter Bag and Timer Valve (x)     Motor (xi)    Hammer and Tooth Ring (xii)   Def. plates 2. I have heard ld. JDR, Shri H.C. Verma for the appellant/Revenue and ld. ....

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....the item mentioned at Sl. No. (ix) in the above list, ld. Counsel relies on the Tribunal's decision in Century Cements Ltd. v. CCE, Raipur [1997 (95) E.L.T. 655 (Tribunal)]. 5. I have considered the submissions. 6. I note that, in view of the Supreme Court's decision in the case of CCE, Coimbatore v. Jawahar Mills Ltd. [2001 (132) E.L.T. 3 (S.C.)], the question whether any goods is eligible as capital goods for Modvat credit under Rule 57Q of the erstwhile Central Excise Rules, 1944 has got to be resolved with reference to the use of the goods in the process of manufacture of final products in the factory of the assessee. The use of each of the goods as stated by the respondents has been noted by the lower appellate authority in....

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.... a part of the plant and machinery. The Electric Fan provides cool air through a duct so as to keep hydraulic cylinders etc. always cool without getting damaged. Electric Motor is mounted on the kiln to work the shell air fan. Thus the fan and the motor would fall under the expression "accessories" in Clause (b) of Explanation (1). ACC MON LC80 is stated to be a castable and used for inner lining of the kiln shell, thereby forming a part of the kiln. Centre Disc has been held to be a spare part of raw material crusher, which crushes iron ore/coal lumps into small sizes fit for being fed into the kiln. Where the raw material crusher is a machine, machinery or the like, its spare parts will be immediately covered by Clause (b) of Explanation ....