2017 (8) TMI 829

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....ether the benefit of modavat under Rule 57Q would not be admissible upto 23.7.1996 following ratio of Larger Bench of the Appellate Tribunal in Jawahar Mills Ltd.Vs. CCE, 1999 (108) ELT 47, holding Welding Electrodes to be capital goods upto 23.7.1996? (B) Are the words "used in or in relation to the manufacture" not wide enough to encompass the process by which the Raw Mill and the Cement Mill are rebuilt through welding, without which the Mill cannot carry out activity of cement manufacture?" 3. Mr. Thakur, learned counsel appearing for the appellant-assessee at the very out set submitted that at the time when the appeal was admitted, the appellant had raised one more question which reads as under:- "Whether the activity of extractio....

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....ring, the entire exercise of considering the question raised in tax matter for admission would be a fruitless exercise. Therefore, the request is rejected. However, we must make it clear that this order should not be understood to mean that the Court does not have power to raise additional question of law as substantial question of law at the final hearing of the appeal in an appropriate case as provided in Section 35(G)(4) of the Act. 6. Sofar as the substantial questions of law which arise for our consideration is concerned, we note that the question (B) above as framed seeks interpretation of the words "used in or in relation to the manufacture". These words are not found in Rule 57Q of the Central Excise Rules during the period we are ....

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....rer. We note that the decision of the Apex court in Jayaswal Neco Ltd. (supra) has set out the exact process/manner in which railway tracks are used in the factory of the manufacture to determine whether or not they were classifiable as 'capital goods' under Rule 57Q of the Central Excise Rules. 9. Be that as it may, we find that there is nothing on record to indicate the exact manner in which the welding electrodes are used in the appellant's factory. 10. Although the welding electrodes was a subject matter of consideration before the Larger Bench of the Tribunal in Jawahar Mills Ltd. (supra), the eligibility to capital goods credit is not granted merely on the basis of the goods per se, if the good involved is not classifiab....