TMI Blog2008 (10) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... Heard both the sides and perused the records. 2. The issue involved in the instant appeal filed by the Revenue is regarding the eligibility to the Modvat credit on centrally air conditioning plant (installed in the weaving department of the factory of the assessee) as capital goods under Rule 57Q of the Central Excise Rules, 1944. The case relates to the period December 1995. The amount involve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question is used for temperature control and cannot be considered as used for processing/producing of any goods or for bringing about any change in any substance for the manufacture of the final products. Capital goods must directly participate in the manufacturing stream and must have nexus for bringing about any change in substance. 4.1 Heading 84.15 under which the air-conditioning plant fall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal in the case of Commissioner of Central Excise, Madras v. Fourts (India) Laboratories Pvt. Ltd. reported in 1997 (92) E.L.T. 231 (T) has held that the air-conditioner used to control the temperature and humidity during manufacture of drugs and formulation is not eligible to Modvat credit under Rule 57Q as it does not bring about any change in substance in the manufacture of the final product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicability of clause (a) under Explanation to Rule 57Q of the Central Excise Rules, 1944 to the air-conditioner. 5. In the light of the above discussions, I set aside the Order passed by the Commissioner (Appeals) and restore the Order passed by the Assistant Commissioner. 6. The appeal filed by the Revenue is allowed. (Pronounced in Court on 6-10-2008) - - TaxTMI - TMITax - Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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