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TMI Blog2009 (10) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... g Frame was purchased on hire-purchase agreement before 17-6-94, which is the date on which Rule 57R of the Central Excise Rules, 1944 was amended so as to permit availment of capital goods credit in respect of machinery purchased on lease. In respect of other goods, he held that they were not specified as capital goods under Rule 57Q of CER. The Commissioner (Appeals) upheld the order of the lowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturers of cotton yarn exigible to duty under Chapter 52 of First Schedule to Central Excise Tariff Act, 1985. They availed capital goods credit for the following items. S.No. Name of the capital goods. 1. Ring Frame 2. Calendering Machine 3. Craft Mounting Equipment 4. Base Cylinder Grinder 5. Spares for OMA12 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... During the relevant period Rule 57R(3) read as under:- "No credit of the specified duty paid on the capital goods shall be allowed if such capital goods are acquired by a manufacturer on lease, hire-purchase, loan or by any other transaction other than direct purchase, whereby the property in the said capital goods is not transferred to such manufacturer". As regards the Ring Frame, the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of cotton yarn) and Lickerin, Mounting Grinding and Polishing machine is used in mounting which are the major parts of the calendering machine are therefore covered by the definition of capital goods under Rule 57Q, which at the relevant point of time meant "machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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