Commissioner of Central Excise Vs. Manikgarh Cement

1. the revenue challenges the findings of the commissioner of central excise in extending modvat credit on electrical equipment and appliances, and machinery and parts thereof which take part in carrying out various processes necessary for completion of manufacture of the respondents' final product, viz. cement and clinker.2. on hearing both sides, we note that electrical equipment and appliances have already been held to be eligible to be capital goods under rule 57q by virtue of the tribunal's larger bench decision in jawahar mills ltd. vs. cce, coimbatore 1999 (108) elt 47 which has been upheld by the supreme court in 2001 (132) elt 13 (sc). we therefore uphold the commissioner's order extending credit of rs. 1,55,580/- availed on these goods.3. as far as machinery and parts thereof are concerned, we find that there is no dispute that they take part in carrying out various processes necessary for completing the manufacture of cement and clinker, as seen from the show cause notice itself. the revenue's contention before us is that the goods do not play a direct role in completion of manufacture of the final product. it has already been held by the tribunal in the case of jawahar mills ltd. cited supra that direct involvement or direct nexus is not required and what is required is that the goods must be used in the manufacture of final product. we therefore hold that the commissioner has rightly allowed credit of rs. 14,67,157/- on these items.