Per G.R. Sharma :

The ld. Commissioner in the impugned order held that :

"The modvat credit taken during the months April to August, 1994 is allowed under Rule 57Q on capital goods namely, Hopper Top/Hopper Feeder/Gear Machinery Coupling/Flow Control Diaphragm/Gear Ring/Bag Divertors/Kiln Thrust Roller Housing Bearing/Bracket/Allen Max Helical Gear/Coupling Tyre/Screen Drum Assembly/Proportioning System/Group rate control system/Assembly of outlet conc/inlet conc/plain mill head/Assembly of drive shaft & pinion/Solenoid valve/Grinding Media Balls outlet Diaphragm segment/Hard steel lining plate/Clinker/Gypsum-Pozzalana weigh-feeder. Modvat credit in respect of other goods in RG. 23 C Part I during the month of April, 1994 to August, 1994 is disallowed. Credit wrongly utilised, if any, should recovered forthwith from the noticee under Rule 57U of Central Excise Rules, 1944."

2. The facts of the case in brief are that the Appellant manufactures cement. They claimed modvat credit on certain items claiming them to be capital goods. The Department issued two Show Cause Notices alleging that the goods were not capital goods and, therefore, were not eligible for modvat credit under Rule