2003 (7) TMI 93

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.... for the parties. 2. On a reference petition under Section 35G(3) of the Central Excise Act, 1944, following question is proposed, that should be referred for the opinion of this Court : "Whether the Tribunal have the power to allow the benefit of the Modvat credit on the goods under Rule 57Q of Central Excise Rules, 1944, which are otherwise not specifically mentioned in the Rules itself?" ....

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....oods within the meaning of Rule 57Q of the Central Excise Rules. The respondent has claimed Modvat credit on the following items: (1) Castables (2) Electrical goods (3) Parts of Programme Logic Controller (4) Items used at mines (5) P.S. Tank (6) Yarn for packing (7) Refractory Mixer (8) Spare for Compressor (9) Bolt & Nuts 6. Considering the submissions made by the r....

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....1) "capital goods" (a) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products; (b) components, spare parts and accessories of the aforesaid machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose, and ....

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....e it uses. The ammonia used in water treatment, steam generation and inert gas generation plants. Which are a necessary part of the process of manufacturing urea, must, therefore, be held to be used in the manufacture of ammonia and the raw naphtha used for the manufacture thereof is entitled to the duty exemption. 9. In para 5, their Lordships observed as under : ".…The question therein w....