ASSOCIATED CEMENT COMPANIES Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE appellant filed this appeal against the order -in -appeal passed by the Commissioner (Appeals) whereby the benefit of Modvat credit in respect of the Screw Conveyor is denied,

(3.) THE contention of the appellant is that they are engaged in the manufacture of cement and for manufacturing of cement, pollution control equipment is essential and as per the definition of capital goods under Rule 57Q of Central Excise Rules, during the relevant period, pollution control equipment is entitled for the benefit of Modvat credit as capital goods. The contention is that Screw Conveyor is used as part of pollution control equipment. The contention is that the purpose of pollution control equipment is to prevent pollution of the air by retaining dust and the cement particle in the equipment itself so that these particles cannot escape in the air. This screw conveyor is used with the pollution control equipment i.e. as part of ESP (Electro Static Precipitator). By this Screw Conveyor the dust particles and the cement particles collected in the pollution control equipment are derived from the equipment and sent to the plant for use in the manufacture of cement. The contention is that in such a situation they are entitled for the benefit of Modvat credit in respect of the Screw Conveyor.