1997 (3) TMI 651

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....r which is impugned before us has followed the ratio of the decision of the Hon'ble Supreme Court in the case of Rajasthan State Chemicals reported in 1991 (55) ELT 444 (SC) : 1991 (36) ECR 465 (SC). The learned JDR has pleaded that in terms of Rule 57Q only such of those capital goods which are used for processing or manufacturing of the notified finished goods could be allowed the benefit of Modvat Credit as per the definition of the capital goods given in the said rule. He does not however deny that the use of crane is essential for lifting of the material to facilitate manufacture of the notified finished goods in the respondents' factory. In this connection he was specifically asked whether the ratio of the judgment of the Hon&....

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.... a part of the manufacturing stream in the assessee's factory and whether the use is for production or processing or for bringing about any change in the materials used in the manufacture of the final product. The Hon'ble Supreme Court in the case of Collector of Central Excise v. Rajasthan State Chemicals Works reported in 1991 (55) ELT 444 : 1991 (36) ECR 465 (SC) had occasion to consider the scope of the term processing in the assessee's factory in that case and which equipment was only doing the function of lifting of brine solution. In that case the Hon'ble Supreme Court has clearly held that handling would also be a process in the context of notified finished products in case it could be shown that without the function....

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....rposes will have to be considered in or in relation to the manufacture of the notified products. We therefore find no force in the plea of the Revenue and we hold that the appellants would be entitled to the benefit of Modvat Credit in case they are able to show that the use of Fork Lifts is essential in the respondents' factory and without the use of the same the respondents would not be able to manufacture the final product. In this view of the matter we remand the matter to the learned lower authority for this limited purpose. We dismiss the appeal subject to the above observations. In the above case also the Tribunal has relied upon the ratio of the decision of the Hon'ble Supreme Court cited supra. The issue therefore is cov....