TMI Blog1998 (6) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... order the Commissioner held some of the capital goods as admissible. Against two of such items, the Revenue have filed Appeal No. E/1938/97-NB. Both these appeals are being disposed of by this common order. 2. I have carefully examined the description and the function of the contested machinery and have also seen the citations in their regard. The eligibility of the various disputed items for benefit under capital goods is discussed below : 1. Coated Sampler The process involves reacting a number of chemicals in reaction vessels during the course of manufacture of drugs. The sampler is used to remove sample from the in-process material. The goods manufactured by the assessee are subject to rigid quality controls prescribed under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Bill of Entry under which they had imported B.F. 3 gas. Although, in the Bill of Entry the cylinders and the regulators are separately mentioned it is obvious that the gas was imported packed in the cylinders. Modvat credit on such containers under Rule 57Q would be available where the containers are brought in empty state in a factory. When such cylinders are containers for an input, they are not to qualify under Rule 57Q. The Collector s order is upheld if not on the same ground. 7. Airconditioner Departmental Representative relies upon the Single Member order in the case of Commissioner of Central Excise, Coimbatore v. Titan Industries Ltd., reported in 1997 (96) E.L.T. 398 (Tribunal) where Airconditioner required to provide a cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that Humiditifiers are not used in the actual process of manufacture of cloth. Manufacture of goods means the process of converting raw materials into finished goods and whatever machinery is required for converting raw materials into finished goods would be machinery used in the manufacture of such goods. Every item of machinery which has been used in the manufacture of finished goods which plays some role in the process of manufacture of finished goods and when such manufacture of finished goods would not be possible, would be machinery used in the manufacture of such goods. Such machinery would be an essential and integral part of the plant which manufactures finished goods and would certainly satisfy the description that it is machine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nery would apply mutatis mutandis. 11. Fep Lined Pipe Fittings These are used to carry in-process material and, therefore, obviously form part of the plant. These are admissible inputs under Rule 57Q. 12. Aluminium Pallets My observation in this regard to movable platform above apply mutatis mutandis. 3. Thus, in the case of S.S. Movable Platform, S.S. Rack and Aluminium Pallets, the Collector s order is set aside. The Assistant Collector is directed to examine the utilisation of these goods in the light of my observation above and to pass a fresh order. 4. As regards the other goods under reference the Collector s order is set aside. The goods are held admissible under Rule 57Q. The penalty imposed on the assessee for which no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing judgments in which the admissibility of transformers is brought out : (i) 1996 (86) E.L.T. 501 - C.C.E. v. Navbharat Paper Mills. (ii) 1997 (92) E.L.T. 276 - C.C.E. v. R.K. Marbles Ltd. (iii) 1997 (91) E.L.T. 700 - Valley Abrasives Ltd. v. C.C.E. (iv) 1998 (97) E.L.T. 127 (Tribunal) = 1997 (23) RLT 438 - Ropar Spinning Mills Ltd. v. C.C.E. (v) 1997 (72) ECR 694 - Bill Gramito Ceramica Ltd. v. C.C.E. (vi) 1997 (96) E.L.T. 404 - Modern Petrofils v. C.C.E. 8. As against this the learned DR submits that this issue stands referred to a Larger Bench. I have seen reference in file containing Appeal No. E/1835/97-NB. The reference arises out of the issue whether the definition of capital goods is restrictive and relates only to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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