Judgment:
1. This is an application for dispensing with the requirement of pre-deposit of Rs. 20,111.60.
2. In this case benefit of Modvat credit in respect of hose pipe and stopper motor cards was denied on the ground that these goods cannot be considered as Capital goods under Rule 57Q of the Central Excise Rules, 1944.
3. Ld. Counsel appearing on behalf of applicant submits that hose pipes are used to cool the accessories of the furnace and the process of cooling of these equipments is essential for the manufacture of iron and steel. In respect of stopper motor cards, she submits that these are parts of spectrometer and the spectrometer is used for testing the molten metal taken from the furnace during the process of manufacture of ingots and billets so as to obtain steel of desired quality.
Therefore she submits, these goods are capital goods covered under Rule 57Q of the Central Excise Rules, 1944.
5. In this case benefit of Modvat credit in respect of hose pipes and stopper motor cards was denied. The Commissioner in the impugned order held that stopper motor card is a part of spectrometer and the spectrometer is a part of laboratory equipment and the hose pipes are used for water cooling.
6. The contention of the appellant is that these are used in or in relation to manufacture of the final product. The case of the applicant is arguable and the role of these goods in manufacture of steel and iron will be examined in detail at the time of final hearing. Taking into consideration the facts and circumstances of the case, the applicants are directed to deposit Rs. 9,000/-within four weeks from the receipt of the order. On deposit of Rs. 9,000/-, the recovery of remaining amount is stayed till the disposal of the appeal. The applicant is at liberty to deposit the amount in cash or by way of debit in their RG 23C Part II account. To come up for reporting compliance on 17-3-1988.
7. Operative part of the order was pronounced in the Court dated 31-12-1997.