2000 (3) TMI 823

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..... the Respondent. [Order]. -  In this Revenue's appeal, the simple question involved is whether air-conditioners required for maintaining the proper environment in pharmaceutical industry in the area where the pharmaceutical products are actually manufactured would qualify as capital goods under Rule 57Q or not. While Revenue contends that these air-conditioners would not participate directly .....

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..... 7Q, air-conditioners being similar items are only controlling the environment, would also therefore not qualify for Modvat credit and hence the order impugned needs to be set aside. 3. Heard Shri S. Muthu Venkatraman, ld. Advocate for respondents who submits that the question of whether environmental control equipment used in the manufacturing plant where the final products are manufactured .....

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..... ises of the respondents. They are only used to control the environment there in the plant where the manufacturing activity of pharmaceuticals is carried on. It is also not disputed by either side that the Drugs Control Order requires sanitised environment where these drugs are manufactured. I, therefore, find that such control over the environment has nexus to the quality of the final products man .....

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