Per V.P. Gulati: The issue in the appeal relates to grant of MODVAT Credit in terms of Rule 57 Q read with Rule 57 S in respect of Fork Lifts which have been held to be eligible by the learned lower authority by reason of use of the same in the respondents' factory, following the ratio of the judgment of the Hon'ble Supreme Court in the case of Collector of Central Excise Vs. Rajasthan Chemical Works reported in 1991 (55) ELT 444. The learned lower authority in this context has held as under:

"I have carefully gone through the records of the case including the submissions made in the grounds of appeal as well as during the hearing. As rightly contended by the appellants, the provision to Rule 57-S has been amended by Notn. 23/94-CE(NT) by which the concept of capital goods has been redefined to include machinery, machines etc. used in or in relation to the manufacture of final product. I observe that the above expression has a wider connotation than" the expression' used in production or to bring about any change in any substance in the manufacture of final product' and therefore as held by the Supreme Court fork lift being used in the transfer of raw material from one place to