JUDGMENT
Jyoti Balasundaram Member (J)
1. Modvat credit of Rs. 6,32,949/- availed during the month of May 1995, has been disallowed to the appellants by the Commissioner of Central Excise on Electric wires and Cabels, Pumps and Stainless steel tubes on the ground that these are not Capital goods within the meaning of Rule 57(Q) of the Central Excise Rules.
2. On hearing both the sides I note that eligibility of all the three items set out above has been decided in favour of the assessee by various decisions. In the case of C.C.E. v. Jawahar Mills 2001 (132) ELT 3(SC). The Supreme Court has upheld the tribunal order holding that Electrical wires and cabels are Capital goods. In terms of the explanation Rule 57Q and dismissed the appeal of the Revenue. In the case of SIEL Sugar 1998-99 ELT 54 it has been held that Pumps for handling Sugar Syrup in a Sugar Mills are Capital Goods. In the case of Ghatampur Sugar Co. Ltd., 198 (104) ELT-415, Stainless Steel tubes used in boilers in Sugar mills were held to be Capital goods, entitled to credit in terms of explanation 1(G) to Rule 57Q in the present case the steel tubes are fitted in the evaporator in the Sugar mills.
3. Following the ratio laid down in the above mentioned decisions. I hold that all three items in dispute are Capital Goods, eligible to Modvat Credit under Rule 57Q of the Central Excise & Customs. set aside the impugned order and allow the appeal.
(Pronounced in Court)