DALMIA CEMENTS (B) LTD. Vs. CCE

JUDGEMENT

(1.) THE appellants are cement manufacturers. They had taken Modvat credit on various items including (a) Truck loading machine with control panel, belt conveyors and bag divertors; (b) H.B. Chart and (c) Calibrator during the period March to August 1994. The lower authorities disallowed the credit taken on the above three items and ordered recovery of Rs. 6,25,341/ -. Hence the present appeal.

(2.) AFTER examining the records and hearing both sides, I note that the credit in question had been taken at the early stage of the capital goods credit scheme, when "capital goods" had the following definition under Rule 57Q(1) of the Central Excise Rules, 1944:

(3.) THE first item viz. 'Truck loading machine with belt conveyers and bag divertors' was used for diverting, conveying and loading fully packed product [cement in bags] on to trucks. This position is evident from the MATERIAL FLOW CHART produced by learned Counsel as also from the write -up produced by him. The write -up, however, says that, without the truck loading machine, the automatic packing machine cannot function and therefore the truck loading machine with control panel, belt conveyers and bag divertors is integrally connected to the automatic packing machine.