2000 (1) TMI 97

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....and molasses falling under Chapter 17 of the Schedule to the Central Excise Tariff Act. They are also availing the facility of Modvat credit under Rule 57-Q of the Central Excise Rules. During the period November, 1996 to February, 1997 the appellants had taken Modvat credit of the duty paid on M.S. fabricated tanks as capital goods under Rule 57-Q, amounting to Rs. 31,520/-. The Assistant Commiss....

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....ania for the Respondent/Revenue. 3. The learned Advocate has submitted that the goods in question are M.S. Fabricated tanks, some of which were used as receptacle for sulphated syrup at a particular stage of the process of sulphuration, which was a part of the process of manufacture of the final product, and some others were used for preparation of milk of lime which was, in turn, used in the p....

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....ts in the assessee's factory were held to be capital goods eligible for Modvat credit under Rule 57Q ibid. In the latter case, specifically built tanks used for storing a corrosive 'raw material, viz. Hydrofluoric acid was held to be capital goods eligible for credit under Rule 57Q ibid. The learned Advocate, relying on these decisions of the Tribunal has submitted that the issue involved in the p....

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....eason whatsoever for reaching such a finding, except stating that the said tanks were storage vessels and hence did not fall within the definition of capital goods. The lower appellate authority ought to have considered the nexus between the vessels and the process of manufacture in the appellants factory. This, he did not do. The order of the Commissioner (Appeals) cannot be said to be a speaking....