2000 (9) TMI 386

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..... r]. - The appeal taken up for disposal, with the consent of both sides, after waiving deposit. 2. The question for consideration in this appeal is whether the spares of the air-conditioning systems brought by the appellant to its factory are capital goods within the meaning of Rule 57Q and therefore whether the duty paid on them could be utilised as credit. 3. The Commissioner (Appea .....

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..... tc. which were not directly sued in the processes whereby the raw material or component are converted into the finished product, but without which such processes could not take place, were capital goods, within the meaning of clause (a) of Explanation (1) to sub-rule (1) of rule 57Q. Therefore, denial on this ground is not maintainable. 4. The other objection is that it has not been shown th .....

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..... it was not used in the factory but in the residence of an employee, the department would have every right to hold that the goods were not capital goods. But that however requires the department to establish that the machinery in question was in fact used in the factory's manufacture. There is no such allegation in the case before me. The appellant was therefore entitled to take credit of the duty .....

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