2008 (12) TMI 496 - AT - Central Excise

Summary

The appellate tribunal CESTAT, Bangalore, in the citation 12 T 496, represented by Ms. Sudha Koka, SDR, the appellant, has directed against Order-in-Appeal No. 1/2005-CE, dated 31-8-2005. The respondent, a 100% EOU under the STP scheme, applied for debonding 4 split air-conditioners and 13 sets of computer peripherals, availing 90% depreciation on the latter and 72.5% on the former. Customs and Central Excise duties were paid on 9-7-2002, with SED elements of Cenvat Duty paid on 7-1. A show cause notice was issued, demanding excise duty of Rs. 65,016, which was later dropped by the original authority. The revenue appealed, but the learned Commissioner upheld the original order. The grounds of appeal stated that the air-conditioners were not declared capital goods in the relevant notification. The tribunal found that the air-conditioners were essential for creating environmentally controlled conditions for software development, as per Circular No. 289/5/97-CX, and upheld the impugned order, rejecting the appeal. The appeal was thus dismissed.