2000 (2) TMI 173

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....vat credit on joints, channels, angles, rolled and S.S. welded tubes, M.S. angles and plates, H.R. plates and shape and sections, chequered plates and ITR plates. 2. The facts of the case are that the appellants manufacture sugar. They have been availing Modvat credit on a number of items as capital goods. The Revenue alleged that Modvat credit was not available on certain items as they were no....

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.... chain and spares are used to transfer the raw material/semi-processed material etc. from one stage to the other. They, therefore submitted that the function and use of the items and location of part, they are nothing but parts and components of the plants. They thus, submitted that since they are parts or components of plant, therefore in terms of Rule 57Q, they are capital goods. The Asstt. Comm....

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....nt and not components of the capital goods. So the Modvat credit on these items shall not be admissible to the respondents. However, the Department's appeal is not forceful or acceptable in respect of cane carrier chain and spares thereof, nickle screens, steel trash plates and boiler accessories. These items can be considered as capital goods as components of "sugar manufacturing plant and machin....

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.... the Commissioner (Appeals) had no relation with the components and parts or accessories and, therefore were not covered by the explanation to Rule 57Q. He refers to the judgment of this Tribunal in the case of Malvika Steel and stated that the most of the items disallowed by the Commissioner (Appeals) are the same as those disallowed in the case of Malvika Steel Limited. He therefore prays that t....