2003 (7) TMI 509

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....capital goods; (ii)     Whether the cement and steel used for civil construction are entitled to Modvat credit as capital goods; and (iii)    Whether welding electrodes used for repairing and remaking old worn out machine parts can be considered as capital goods in terms of the provisions of Rule 57Q. 2. We have heard both the sides. 3. As regards the first issue as to whether the capital goods used in the mines situated outside the factory premises, the appellants have contended that mines are owned by them and is an extension of their cement manufacturing factory. The same would be includible in the definition of "factory" inasmuch as mining was an inevitable and necessary complimen....

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....onstruction in the appellants' factory, we find that the appellants' reply filed before the adjudicating authority has not disputed the Revenue's stand for denial of credit in respect of the said items and voluntarily debited the credit so taken. From the reply we do not find that any defence argument in respect of the said items was placed on record. Accordingly the Commissioner while holding that the cement and steel was used for the purposes of civil construction or was consumed during the building of such civil structures has held that the same cannot be considered as capital goods used in or in relation to the manufacture of the appellants' final product. However we find that the appellants have now contended before us that such use of....

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....nt plant. The MS pipes are also used to vent out the dust laden in dust collector system and then the dust is fed back to the system through the pipeline. We find that there is no discussion on the above point by the adjudicating authority, for which purposes we direct him to re-adjudicate the issue. 6. As regards the welding electrodes, we find that the Tribunal in the case of Maihar Cement v. CCE, Raipur [2003 (159) E.L.T. 405 (Tri.)] vide its Final Order No. A/1192/02, dated 24-12-2002, has observed that the welding electrodes used for repairing and remaking of worn out parts would be eligible capital goods for the purposes of Modvat. The above view has been taken by following the Larger Bench decision of the Tribunal in the case....