TaxTMI 
TaxTMI 
2003 (1) TMI 491
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....]. - The dispute is about Modvat credit amounting to about Rs. 29,000/- and the item is computer hardware. The appellants claim that the computer in question is capital goods and is entitled to Modvat credit as such under Rule 57Q of Central Excise Rules. The impugned order has held that the computer system is used for measurement of the particle size and the said computer system with Ansoft Sof....
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....htning arrester. Arresters are produced from Metal Oxide Blocks selected and grouped by the computer. It is the appellants' submission that only a computer can carryout selection of components with the required matching and for this reason it is a very essential capital equipment and it has a direct role in the manufacturing activity. According to them, all items used in or in relation to manufact....
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....ctions. Therefore, it has a direct role to play in the manufacture. It is clear from the decisions relied on by the appellants that capital goods eligible for Modvat credit are not merely the goods which directly process the raw material. But also capital goods taking part in production in an indirect and auxiliary capacity. It is also clear that material handling and testing equipment are also el....