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TMI Blog2010 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... esitation in holding that the steel plates and M.S. Channels, used in the fabrication of chimney would fall within the ambit of "capital goods" as contemplated in Rule 57Q. It is not the case of the Revenue that both these items are not required to be used in the fabrication of chimney, which is an integral part of the diesel generating set, particularly when the Pollution Control laws make it mandatory that all plants which emit effluents should be so equipped with apparatus which can reduce or get rid of the effluent gases. Therefore, any equipment used for the said purpose has to be treated as an accessory in terms of serial No.5 of the goods described in column (2) of the Table below Rule 57Q. - 3760 Of 2003 - - - Dated:- 9-7-2010 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee pleaded that the items in question being components of chimney which in turn was an accessory of the diesel generating set, falling under heading 85.02, they also qualify the test of "capital goods" specified against serial No.5 of the Table, and therefore, MODVAT credit in respect of the said items was clearly admissible. It was asserted that chimney was a vital part of the generating set for discharge of gases arising out of burnt fuel, mandatory under the Pollution Control laws. 4. The Assistant Commissioner was of the view that since steel plates and M.S. channels were not used as input in the manufacture of final product, these could not be covered under any of the chapter headings in the Table under Rule 57Q, MODVAT credit on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of final product so as to make them eligible for MODVAT credit in terms of serial No.5 of the said Table. Learned counsel thus, urged that the order of the Tribunal deserves to be set aside. 6. Per contra, Mr. B.L. Narsimhan, learned counsel appearing on behalf of the assessee supported the decision of the Tribunal. He submitted that the issue sought to be raised by the Revenue in this appeal stands concluded in favour of the assessee by a decision of this Court in Commissioner of Central Excise, Coimbatore Ors. Vs. Jawahar Mills Ltd. Ors. {(2001) 6 SCC 274}, wherein observing that the exemption notification must be so construed as to give due weight to the liberal language it uses and that any goods that may be used in the facto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) (3) 1. ............... ............... 2. .......... .......... 3. All goods falling under chapter 85 (other than those falling under heading Nos. 85.09 to 85.13, 85.16 to 85.31, 85.39 and 85.40); 4. .......... .......... 5. Components, spares and accessories of the goods 6. specified against S. Nos. 1 to 4 above;" 9. The language of Rule 57Q is clear and unambiguous. It applies to the final products described in column (3) of the Table under the Rule as also to other goods, referred to as "capital goods", described in the corresponding entry in column (2) of the said Table, used in the factory of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal products; (b) components, spare parts and accessories of the aforesaid machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose; and (c) moulds and dies, generating sets and weighbridges used in the factory of the manufacturer." 12. Inter alia observing that capital goods can be machines, machinery, plant, equipment, apparatus, tools or appliances if any of these goods is used for producing or processing of any goods or for bringing about any change in the substance for the manufacture of final product, although this view was expressed in the light of the afore-noted definition of "capital goods" in the said Rule, which is not there in Rule 57Q, as applicable in the instant case, yet the "us ..... X X X X Extracts X X X X X X X X Extracts X X X X
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