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TMI Blog1988 (9) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... that the sum total of the value of the capital investment made from time to time on the plant and machinery installed in the industrial unit in which the goods are manufactured is not more than Rs. 20 lakhs. The respondents declared the value of the plant and machinery, pumps and motors, steel pipes and fittings at 19,67,866.61. The Assistant Collector added the cost of a crusher estimating its value at Rs. 50,000/- whereby the respondents became ineligible to the concession, the value of the plant machinery having been held to exceed Rs. 20 lakhs. Aggrieved, they filed an appeal to the Collector (Appeals) who in the impugned order allowed the said appeal taking into consideration a Board s circular according to which the cost of the gene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nerator set is capital goods and therefore plant and machinery used for generating electricity and that therefore its value was includible in that of plant machinery). He reiterated the findings of the Assistant Collector with regards to the inclusion of the value of pump, motors, steel pipes, fittings and steel cutter. He further submitted that the Board s circular relates to Notification No. 199/75-CE only and the provisions of Notification 105/80-CE are entirely different. Even if held otherwise the Board s circular is not definitive according to the learned SDR. Finally he pleaded that the term plant machinery includes any or all machinery intended for industrial capacity and in support of his argument cited judgment of the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 in its proviso has a condition that the value of the capital investment made from time to time on plant and machinery installed in the Industrial unit, should not exceed 20 lakhs. There is no definition of plant machinery in the Notification. Therefore there was need for the Central Board of Excise Customs to clarify what was intended by the expression. Earlier, in similar circumstances, the Board seemed to have consulted the Ministry of Industry before issuing the circular. It is true that the circular was not issued with reference to the present Notification but the circular itself is in general terms and does not mention any particular Notification. Therefore, in our opinion the Collector (Appeals) was correct in applying the Board ..... X X X X Extracts X X X X X X X X Extracts X X X X
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