1999 (9) TMI 330 - AT - Central Excise

Summary

Issues:
1. Eligibility of Cables, Regulators, and Capacitors for Modvat credit as 'capital goods' under Rule 57Q.

Analysis:
The Appellate Tribunal CEGAT, New Delhi heard an appeal against the order of the Commissioner of Central Excise, Delhi, regarding the eligibility of Cables, Regulators, and Capacitors for Modvat credit as 'capital goods.' The appellant argued that the items in question did not have a direct nexus in bringing about a change in the substance of goods by direct participation in the manufacturing stream. Reference was made to previous decisions where similar issues were discussed. The respondent, represented by the manager, cited two Tribunal decisions supporting the eligibility of Capacitors for Modvat credit under Rule 57Q. The Tribunal analyzed the submissions and referred to previous cases where Oxygen Tanks, Furnaces, C.I. Trumphets, and Capacitors were considered as component parts of a plant, making them eligible for the benefit of Rule 57Q. The Tribunal also highlighted the importance of Capacitors in maintaining a regular supply of electricity to the process plant. Based on the case law supporting the eligibility of Capacitors as capital goods, the Tribunal found no merit in the Revenue Appeal and rejected it accordingly.