2000 (7) TMI 123

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....erred to as the 'inputs'), under Rule 57-S of the Central Excise Rules, 1944 (hereinafter referred to as the 'Rules'). These inputs were used in the fabrication of skid rails, skid tubes and stands. These skid rails, skid tubes and stands were fabricated for holding the material and pushing the same through the furnace, for slab heating and annealing processes etc. during the course of manufacture of brass strips/foils etc. Following the Tribunal's decision in the case of Vivek Alloys Ltd. v. CCE, Coimbatore, 1998 (98) E.L.T. 156 (T), the Commissioner of Central Excise (Appeals), Ghaziabad, held that no credit was available in respect of such inputs. 2.The matter was heard on 20-6-2000, when Shri R.S. Pandey, consultant, submitted that t....

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....216.10) inputs - and had taken Modvat credit of the duty so paid on these inputs under Rule 57Q of the Rules, credit of the specified duty paid on the capital goods used by the manufacturer in his factory was allowable subject to given conditions and limitations. The above named inputs were not covered within the definition of 'capital goods' as given in the explanation under Rule 57Q. These inputs were used for fabricating skid rails, skid tubes and stands which were also not covered within the definition of capital goods. The skid rails, skid tubes and stands were also not a part of the furnace. These were laid to facilitate holding and movement of the material into the furnace. They could not be considered as parts or components of the f....

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....hereof. Fixtures and baskets formed integral part of the furnace/oven since they were necessary for producing the components. In the case of Star Paper Mills Ltd. v. CCE, Meerut, supra, it was observed that hot rolled coil in plate form used in the manufacture of storage and processing tanks which in turn are used as capital goods in the manufacture of paper, were eligible to credit as inputs by virtue of sub-para 2 of Rule 57D introduced vide notification no. 17/95-C.E. (N.T.), dated 18-5-1995. In the case of Commissioner of Central Excise, Chandigarh v. Steel Strips Ltd., supra, the angles and joists/M.S. rounds were used to manufacture conveying system in rolling unit and the Tribunal observed that they were eligible for the benefi....