TMI Blog1998 (6) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... A.C. held that Modvat credit was not admissible on the parts of Air Conditioner and advised them not to take the Modvat credit on the parts of Air Conditioning Plant. The Commissioner (Appeals) held that the adjudicating authority erred in, (i) ignoring the fact that the slightest defect in such a product could be hazardous to human life; (ii) in misinterpretating the relevant statutory provisions, and (iii) in reaching findings which were self contradictory, which ignore the factual position and which were against the spirit and language of the legal provisions and set aside the A.C s order. 3. Department s contention is that under Rule 57Q of the Central Excise Rules, 1944 credit is admissible on the capital goods which are used for pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r jacketed feed tanks. (d) Rows of stainless steel pins are dipped into the gelatine solution for the capsules being moulded. The dipping time is controlled by special cams. (e) The Cap and Body pin Bars rise to the upper deck as the gelatine sets on the Pins. Pin bars then travel on the upper and lower decks on which controlled quantity of conditioned air is blown on capsules for drying. (f) These pins are later rotated for an even spread of gelatine on the pin s surface. This also ensure proper `dome thickness. Then, the capsule halves are dried, in a special section of the machine, with purified, filtered and controlled air. (g) Capsule halves are then individually stripped from the pins, accurately cut and joined. Special equ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achines to maintain humidity and temperature control, falling under sub-heading 8415.00. The assessee filed necessary declaration in terms of Rule 57T and claimed Modvat credit of duty allowed under Rule 57Q ibid. This was done on 31-5-1994. He further submitted that manufacture of capsules will be impossible if the parameters of temperature and humidity at various stages of manufacture are not kept under control. The extracts of Technical Literature from U.S.A. were given to show that air-conditioning equipments like gas compressors with motors, air handlers, filters, dehumi-difiers, controls, cooling and heating coils, are one of the essential plant/equipments in capsule making industry, and that it is essential to maintain certain ambien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted in 1989 (43) E.L.T. 201 (S.C.) has referred to the observations of the Supreme Court in the case of J.K. Cotton Spinning and Weaving Mills Ltd. - 1965 (16) STC 563 (S.C.) as follows and adopted the principle for Central Excise purposes : 4. ... manufacture of goods should normally encompass the entire process carried on by the dealer of converting raw materials into finished goods. Where any particular process, this Court further emphasised, is so integrally connected with the ultimate production of goods that, but for that process, manufacture or processing of goods would be commercially inexpedient, articles required in that process, would fall within the expression in the manufacture of goods. 7. I consider that in view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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