COMMISSIONER OF C. EX. Vs. STEEL STRIPS LTD.

JUDGEMENT

(1.) WHETHER following items are capital goods or not is availing the Modvat credit in terms of Rule 57Q(1) is an issue to be considered in this case.

(2.) THE department's case is that on being complete installation of the Angles and Joists they become parts of Civil Structure as the same is embedded in earth and does not qualify the definition of capital goods under Rule 57Q of the Central Excise Rules, 1944 and thus not eligible for Modvat credit. In support of his contention, Shri Y.R. Kilania, learned JDR also relied upon the decision of the Tribunal in the case of Indian Berytes and Chemicals Ltd. v. C.C.E. reported in 1990 (50) E.L.T. 196 (T).

(3.) ON the other hand, Shri Jitender Singh, ld. Advocate appearing for the Respondents drew my attention to the statement of facts wherein the department itself of the view that the items have been used to manufacture conveying system in the rolling unit of the notice. The Commissioner (Appeals) has also given a categorical findings that the above items are inputs of capital goods as per its usage shown by the appellant and is a part of plant and machinery and falls within the meaning of capital goods in terms of Rule 57Q(1)(b). Similarly, he observed that the computer hardware/computer has been installed with Baird Direct Reading Vacuum Emission Spectrometer for analysing the report of sample testing of raw material is used in manufacturing process as the same analyse the sample testing report. UPS which is used along with computer is, therefore, also a capital goods in this case and credit on these items are allowable.