2004 (11) TMI 195

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....nds that the same are in the nature of structurals or construction materials and used for structural purposes and not covered by the definition of Capital Goods under Rule 57Q. 2. We have heard both sides in the matter. 3. The learned Counsel displayed the photographs of the conveyor system and pointed out that the structures, which have been fixed as support to the conveyor system and the same has become part of the conveyor system and without the said structures, the conveyor system cannot function. In this regard, he relied on the following judgments wherein the structures which have been used for installation of plant have been considered to be part of machinery and benefit of Modvat credit has been granted. (a) Varalaksh....

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.... of steel forging and hence held to be not Capital Goods and the credit was denied. In the case of CCE v. DSM Ltd. - [2003 (162) E.L.T. 987 (T) = 2003 (58) RLT 503 (CEGAT-Del.)] angles, joints and sheets were used for fabrication of structures, sheds, etc. and held to be not eligible for the benefit. 5. On a careful consideration, we find that the impugned structures have not been used for civil construction or for the purpose of putting up a shed as held in the cases of Sadhu Udyog v. CCE. and CCE v. DSM Ltd. cited supra, and the citations referred to by the learned SDR are, therefore, distinguishable. The appellants' case is that the item has become part and parcel of the conveyor system and they are parts of the conveyor system. T....