COMMISSIONER OF CENTRAL EXCISE Vs. STAR PAPER MILLS

JUDGEMENT

(1.) REVENUE filed this appeal against the impugned order dated 8 -4 -1997 passed by the Commissioner of Central Excise (Appeals). In the impugned order, the benefit of Modvat credit, as 'capital goods' is allowed on the following items :

(2.) LD . JDR, appearing on behalf of the Revenue, submits that the items, on which the benefit of Modvat credit is allowed, are not covered under the definition of capital goods as provided under Rule 57Q of the Central Excise Rules. He submits that the tube well is used for drawing water from earth, which do not come under the definition of capital goods. In respect of other items, he reiterated the grounds of appeal.

(3.) LD . Counsel, appearing on behalf of the respondents, submits that the issue in respect of capital goods, is now decided by the Larger Bench of the Tribunal in the case of Jawahar Mills Ltd. reported in 1999 (108) E.L.T. 47 (Tribunal), 1999 (32) R.L.T. 379. He submits that the Larger Bench of the Tribunal, after considering the scope of capital goods, held that electric items, such as, conductors, fuses, wires and cables and relay are entitled for the benefit of capital goods. In respect of conveyor belt, he submits that the Tribunal in their own case vide Final Order No. A/490/99 -NB (DB), dated 14 -6 -1999 1999 (113) E.L.T. 933 (Tribunal) held that conveyor belt for coal and pay loader of coal are entitled for the benefit of Modvat credit as capital goods. In respect of other items, he reiterated the findings of the lower authorities.