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2015 (9) TMI 824 - HC - Central ExciseDenial of CENVAT Credit - 'Welding Electrode' - Whether it is capital goods - Held that:- The definition of 'capital goods' under Rule 2(b) of Rules, 2002 and Rule 2(a) of Rules, 2004 is exhaustive in the sense that it clearly specifies what 'capital goods' would mean. The items which fall under certain chapters of Central Excise Tariff Act are specifiably mentioned in Rule 2(b)(i) of Rules, 2002 and Rule 2(a)(A)(i) of Rules, 2004. Then comes pollution control equipment', moulds and dies, jigs and fixtures, refractories and refractory material, tubes and pipes and fittings thereof and storage tank. All these things, if used in the factory of manufacturer of final products, or, for providing output service, would mean 'capital goods'. However, it would not include any equipment or appliance used in office. There is one more aspect, i.e., Rule 2(b)(iii) of Rules, 2002 and Rule 2(a)(A)(iii) of Rules, 2004, which say that in respect to items mentioned in Rule 2(b)(i) and (ii) of Rules, 2002 and Rule 2(a)(A)(i) and (ii) of Rules, 2004, components, spares and accessories of the goods specified thereunder would also fall within the category of 'capital goods'. - For the reasons given in the judgment in M/S Upper Ganges Sugar & Industries Ltd. Vs. Commissioner Customs & Central Excise (2015 (5) TMI 569 - ALLAHABAD HIGH COURT), the aforesaid question of law is answered in favour of Revenue - Decided in favour of Revenue.
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