TaxTMI 
TaxTMI 
2005 (2) TMI 298
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....bsp; Cone (Part of Coal Mill) 5. Structural Support for Conveyor System. It was pleaded by Shri Sanjay Grover, ld. Advocate that in this case, the dispute is for the period prior to 23-7-96. Head Beams for Elevators, which were received by the appellants in February, 1996 are not parts of Civil Construction materials but are actual accessory for working of Elevator system. Bucket elevator is used for lifting Raw Mill rejected limestone pieces vertically and feeding it to the main mill feeding belt conveyor. This Bucket Elevator lifts the mill rejected limestone from the raw mill at ground level through Bucket Elevators and conveys it to the height of 31 metres. Bu....
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....d that the supporting structures of steel is to be considered as part of the plant, having regard to the functions it performs of supporting the clinker hopper through which clinker is fed into the dumpers. Regarding parts of Pollution Control Equipment received from November, 1995 to February, 1996, it was pleaded that during the relevant period, Explanation (1) to Rule 57Q defined capital goods as below :- "(a) machines, machinery, plant, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of 'Final Products'; (b) .............. (c) &....
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....Control Equipment are eligible for Modvat credit. Regarding parts of Re-claimer, it was stated that the Stacker Reclaimer is machine that is used as a material handling equipment 'Stacker' is used to make stock piles of crushed limestone layerwise. Reclaimer is used to reclaim the limestone from the stock pile in vertical manner so that a proper mix up of lime-stone is done and put into manufacturing process. This process is clearly part of manufacturing process as the feeding of limestone for manufacture of Clinker is an activity of manufacture. He also relied on para-17 of the decision of the Supreme Court in the case of CCE, Jaipur v. Rajasthan Chemical Works [1991 (55) E.L.T. 444 (S.C.)]. Regarding Cone, which has been received on....
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....6 was clarificatory in nature, credit cannot be denied. For Structural Support for conveyor, it was pleaded that Structural Supports cannot be equated with civil construction. The Structural Supports is used for installation of conveyor. It is a component of the conveyor and not civil construction of the plant or foundation. The conveyor in the plant is used for shifting crushed limestone to stacker and stacked crushed limestone is shifted to raw mill hopper. Similarly, these are also used for shifting Latererite, Gypsum raw, clinker and packed cement bags. Conveyor system is essential and important part of main manufacturing process and these are eligible for credit. 3.Shri V. Valte, ld. SDR appearing for the Revenue pleaded that at ....
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....1996, Heading 8474 was not covered by the definition of capital goods provided under Rule 57Q of the Rules. Regarding Cone (Part of Coal Mill received on 31-7-1996), it was pleaded that w.e.f. 23-7-1996 as per revised Explanation (1) to Rule 57Q, no credit was available to goods falling under Chapter Heading 84.74 and their parts w.e.f. 23-7-1996. Therefore, the Commissioner has correctly disallowed the credit of Rs. 66,250/- on these goods. On Structural Support for Conveyor, it was pleaded that the Structure items in question are neither machinery/equipment by itself nor their parts/components but components used in supporting and functioning of the conveyors. He stated that Structures for equipments falling under Heading 7308.90 cannot b....
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....appellants during the period from November, 1995 to February, 1996. The Pollution Control Equipments were notified as capital goods only w.e.f. 23-7-96. No credit is allowable on Parts of Pollution Control Equipments as parts were not notified, at the relevant time. Therefore, the credit has been correctly denied by the Commissioner on the parts of Pollution Control Equipments. Stacker Reclaimer are used as material handling equipment and material handling is an integral process during manufacture of final products, therefore, credit cannot be denied on these parts of reclaimers. These were covered by definition of capital goods under Clause (a) of Explanation (1) to Rule 57Q. Cone (Part of Coal Mill) received by the appellants on 31-....