TMI Blog2000 (3) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... er the category or capital goods under Rule 57Q. In the appeal filed by the aggrieved party against the Assistant Commissioner's order of the' adjudication, the lower appellate authority passed its order dated 19-10-97 holding that the goods in question were eligible as capital goods for the credit under Rule 57Q and reversing the order of adjudication. The Department has come in appeal against this order of the Commissioner (Appeals). 3. I have carefully examined the impugned order and connected records of the case. I have also heard the ld. D.R. appearing for the Revenue and the ld. Counsel for the Respondents. The ld. D.R. has reiterated the grounds of the appeal. He has admitted the fact that all the goods in question namely vapour a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used as component parts of air handling unit meant for bringing down the temperature in the coating rooms in the assessees' factory and the Tribunal held the said item to be capital goods eligible for Modvat credit under Rule 57Q of the Rules. According to the ld. Counsel, the issue involved in the present case is squarely covered in favour of the Respondents by the decision of the Tribunal in the case of the Jawahar Mills Ltd. (supra). He has therefore prayed for rejecting the Appeal. 6. I have carefully considered the rival submissions. I find that the Department has accepted the fact that all the goods in dispute were used in the Central Air Conditioning plant to maintain the temperature of the atmosphere for the process of manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the Tribunal's decision in the case of Shunmugaraja Spinning Mills (P.) Ltd. is not good law after the decision of the Larger Bench in the case of Jawahar Mills Ltd. The position of humidifier in "Shunmugaraja Spinning Mills" is analogous to air conditioning plant in the instant case. Therefore, the ratio of the Larger Bench in the case of Jawahar Mills Ltd. is squarely applicable to the issue involved in the instant appeal for holding that the parts of the air conditioning plant used in the process of manufacture of pharmaceutical products in the Respondents' factory are eligible as 'capital goods' for the Modvat credit under Rule 57Q of the Central Excise Rules. The order of the lower appellate authority is in keeping with thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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