Per V.P. Gulati :

The issue in the appeal relates to the grant of MODVAT credit in respect of certain equipments. The learned lower authority has denied the appellants the MODVAT credit in respect of certain items holding that these items are not covered by the definition of capital goods as set out under Rule 57Q of the Central Excise and Salt Act.

2. The learned Consultant for the appellants has made submissions in respect of each of the items and his submissions are considered in the light of what he has argued in the order in which these are dealt with in the lower authority's order.

Fork Lift and Lift materials:

3. The plea of the learned Consultant is that the appellants are manufacturing pharmaceutical items and the handling of the materials for feeding the same at the different stages of processing is essential and for that reason, therefore, the MODVAT credit in respect of these items should be allowed. In this connection he referred us to the judgment of the Tribunal in the case of MM Forgings Ltd., Vs., CCE reported in 1997 (89) ELT 617. In that case taking note of the judgment of the Hon'ble Supreme Court in the case of Rajasthan Chemical Works reported in 1991 (55) E