TaxTMI 
TaxTMI 
2013 (8) TMI 501
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....)]. The appellant has raised substantial questions of law to be considered by the Court, which are summarized in question Nos. 1 and 2 as follows :- "1. Whether the Tribunal was justified in confirming the order regarding disallowance of Modvat-credit on HR/MS/GC sheers plates/angles/channels/supporting structure etc. when the use of the same was specifically given at the time of adjudication proceedings and the same has been reproduced in the order of the Asstt. Commissioner of Central Excise? 2. Whether the Tribunal was justified in holding that HR/MS/GC sheets plates/angles/channel/supporting structure etc. are not part and accessories of the capital goods installed in the factory. When even the Asstt. Commissioner of Central Excise ad....
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....etermine the eligibility as capital goods. Even the role of the particular lot in question should be given as these goods have multifarious applications. The Hon'ble Tribunal in the case of Rosa Sugar Works v. CCE, Kanpur 1999 (114) E.L.T. 950 (Tri.) has held "The appellants have not placed any corroborative evidence on record regarding the precise use of these item. Fabrication/construction material have been held by the Tribunal as not being covered by the definition of capital goods under Rule 57Q. Item used for repairing damaged part of already manufactured capital goods are not covered by the definition of capital goods". There is a clear cut distinction between the raw material of capital goods and parts/components thereof e.g. Steel....
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....tes and M.S. Channels used in the fabrication of chimney for the diesel generating set will qualify for Modvat-credit as accessory to goods specified as 'capital goods', on the ground that there is no dispute that chimney attached to diesel generating set is covered by items at Sl. No. 5 of the goods described in column (2) of the table appended to Rule 57Q by Notification, dated 1-3-1997. The Supreme Court relied upon Commissioner of Central Excise, Coimbatore & Other v. Jawahar Mills Ltd. & Others [(2001) 6 SCC 274 = 2001 (132) E.L.T. 3 (S.C.)] in which applying the 'user test' to find out whether or not particular goods is said to be 'capital goods', it was held in para 13 as follows :- "13. Applying the "user test" on the facts in hand....
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....batore & Othesr v. Jawahar Mills Ltd. & Others [2001 (132) E.L.T. 3 (S.C.) = (2001) 6 SCC 274] in submitting that capital goods can be machine, machinery, plant equipment, apparatus, tools or appliances. It any of these goods used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final produce would 'capital goods' and qualify for Modvat credit. 8. We have considered the cases cited by the counsel for the appellant, and do not find that the items in the present case fall within the meaning of capital goods as defined in explanation to Rule 57Q of the Central Excise Rules, 1944. Rule 57Q is quoted below :- "57Q. Applicability. - (1) The provisions of this section shall apply t....
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....ment, apparatus, tools or appliances used for aforesaid purpose; and (c) moulds and dies, generating sets and weigh-bridges used in the factory of the manufacturer. (1) 'specified duty' means duty of excise or the additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975). (2) Notwithstanding anything contained in sub-rule (1), no credit of the specified duty paid on capital goods shall be allowed is such duty has been paid on such capital goods before the 1st day of March, 1994." 9. The goods in the present case do not fall within the meaning of Explanation 1(a) of Rule 58Q. We also find that Explanation 1(b) of Rule 58Q is not attracted to the goods in the present case inasmuch as 'capital goods' in....