TMI Blog1997 (1) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... ned SDR, Shri R. Victor Thiyagaraj has pleaded that the issue is covered against the assessee by the ratio of our decision in Order No. 1318/96, dated 11-8-1996 [reported in 1996 (67) ECR 122 (Tribunal)]. He has pleaded in that case the Tribunal has denied the benefit of Modvat credit in respect of humidifiers which was required to be fitted in the textile unit for controlling the humidity in the manufacturing unit. He has pleaded that the function for which the Air conditioner are fitted is similar to one of the humidifiers as these controlled temperature and humidity. He has therefore pleaded that the benefit of Modvat credit as allowed by the learned Lower authority is not sustainable in Law. 2. Heard the Dy. General Manager (Finance) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of final products in any other place in India; or (b) by a hundred per cent export-oriented undertaking or by a unit in an Electronic Hardware Technology Park or by a unit in Software Technology Parks and used for the manufacture of final products in any place in India, shall be restricted to the extent of duty which is equal to the additional duty leviable on like goods under section 3 of the Customs Tariff Act, 1975 (51 of 1975) equivalent to the duty of excise paid on such capital goods. The capital goods as set out in the said rules under heading explanation are also reproduced below : Explanation. - For the purposes of this section, - (1) capital goods means - (a) machines, machinery, plant, equipment, appara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduce (drawing etc.) by a process. production n. Producing; thing(s) produced; literary or artistic work It is observed that production or process would mean physical processing of the goods and the capital goods must have a nexus for bringing about any change in the substance of the goods by direct participation in the manufacturing stream. Humidification only creates atmosphere and does not answer to the use as above. There is no dispute that humidification is required to be done for having certain level of humidity to get the yarn of a particular quality and that by itself does not mean that the humidification plant can be considered as equipment used for production, process or for bringing about any change in the substance in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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