TaxTMI 
TaxTMI 
2005 (12) TMI 195
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....use in their factory and availed the credit of duty paid on such welding rods as capital goods. A show cause notice denying the benefit of Modvat was issued on the ground that the welding rods cannot be capital goods. On an appeal the adjudicating authority upheld the order of the adjudicating authority and hence this appeal. 3. The learned advocate for the appellant submits that during the relevant period the definition of the capital goods was all encomposing and would also include the welding rods consumed. He submits that the welding rods used by the appellants are for the purpose of welding the machinery and without this machinery they cannot manufacture the final products. Further he submits that credit of the duty on the welding ma....
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....abrication work and 10 kgs. used in patching work of the machinery as per the statement enclosed" The said certificate is issued by the Chief Engineer of the appellants in respect of the issue in the current appeal. From the above it is very clear that the welding rods were used for fabrication work and for patching work of machinery. The above said certificate also brings to light that the welding rods were not used as any inputs nor they can be termed as capital goods. In order to get the credit as capital goods it has to be satisfied that they fall under the definition of the 'capital goods'. During the relevant period the definition of the capital goods was as follows :- ' "Capital goods" means - (a) &nbs....
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....llants claim is that these are used in the repair of machines, therefore, become components and these become component, spare or accessories of the goods specified under Serial Nos. 1 to 4 of Rule 57Q of the Central Excise Rules. We find that as per the S.B. Sarkar's Words & Phrases of Excise & Customs, the meaning of "component", 'part' and 'accessory' is as under : Component - It means one of the parts of sub-assembly or assembly of which a manufactured product is made up and into which it may resolved. Part - A piece or portion of a whole Accessory Assembly - A part, sub-assembly or that can contribute to the effectiveness of a piece of equipment without changing its basic equipment without changing its ba....