TMI Blog2001 (3) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... are engaged in the manufacture of Telephone Cables falling under sub-heading 8544.00. They had availed the Modvat credit on the items viz., Speco Lube, Nexus N : 375 VAUPS with built in batteries, Testing Chords, Input Assembly Module, Tachometer, Generator, Connector, Pump and Annealer Cooling as capital goods. The Assistant Commissioner of Central Excise, Chandigarh vide his order dated 18-12-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory. It is contended that meaning of the capital goods as per Rule 57Q during the relevant period is restrictive and not exhaustive. The words used in the Explanation are in the manufacture of . and not in or in relation to the manufacture of which suggests that capital goods or these accessories should have direct role in manufacturing process. I have considered these submissions. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at credit. Not only the complete machines, machinery, plant, equipment, apparatus, tools or appliances falling under clause (a) their components, spare parts and accessories are also to be treated as capital goods entitled to Modvat credit. The only condition that is to be satisfied for clause (b) to come into play is that components, spare parts and accessories must be of machines, machinery, pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e analysis in the order of the Larger Bench of the CEGAT, it is observed that the definition does not require the use of the capital goods in the direct manufacturing process of the end products. Therefore, the contention of the Revenue in their appeal is misconceived. However, at the relevant time, the item Speco Lube used as lubricant did not fall within the definition of capital goods. The lubr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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