Per Shri P.C. Jain :

Briefly stated, the facts of the case are as follows :-

1.1 The Appellants herein are manufacturer of abrasive materials. For this purpose, they have installed a plant. For the purpose of running the said plant, they obtained a transformer after payment of duty and claimed modvat credit in respect thereof under rule 57Q of Central Excise Rules, 1944. The modvat credit was availed by them on two transformers to the tune of Rs. 46,747 on 28.7.94. The lower authorities have denied the benefit of rule 57Q on the ground that the transformers are not meant for the purpose of producing or processing of any goods or for bringing about any change in any substance in the manufacture of final products. The purpose of transformer obviously is to step down the voltage of electricity received by the Appellants in their plant.

1.2 Hence this Appeal before this Tribunal.

2. Short question involved in this Appeal, therefore, is whether the modvat credit would be permissible on transformers under rule 57Q as it existed before 16.3.95. It is admitted to both sides that clause (d) of Explanation I to rule 57Q of the Central Excise Rules, 1944 allows the benefit of modvat credit o