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TMI Blog2009 (3) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... ped in the exclusions of admissible MODVAT Credit. X X X X Extracts X X X X X X X X Extracts X X X X ..... enged by seeking refund of Rs. 3,69,008/-. The order of the Deputy Commissioner-cum Adjudicating Authority categorically holds that the dealer-appellant has erected two chilling plants falling under Chapter Heading 84.15 without paying any duty which were not eligible for Modvat Credit as Chapter Heading 84.15 has been specifically excluded from the definition of 'capital goods' during the relevant period, namely, 23-7-1996 to 1-4-2001. The argument of the dealer-appellant that chilling plant is essential requirement for the manufacture of pharmaceuticals/drugs did not find favour with the Adjudicating Authority for the reason of express exclusion of those items from the definition of 'capital goods'. On appeal, the view taken by the Adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital (goods?) under Rule 57Q was different and was for the period of July 1996. To my mind, the exclusion of the specific heading from the definition of capital goods debars the respondent from availing the Modvat credit on the parts of chilling plant falling under chapter heading no. 84.15, however, it may be required for the manufacture of final products" 5. We have heard learned counsel for the parties at considerable length and have perused the paper book with their able assistance. It would be necessary to read Rule 57Q of the Rules alongwith the 'Table', which grant Modvat Credit by defining 'capital goods' and specifically exclude those items which would not qualify as such. Rule 57Q alongwith the table (as it stood during the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and used in the factory of the manufacturer, namely (a) all goods falling under Chapter 84 (other than those falling under heading No. 84.07 to 84.09, Compressors falling under heading No- 84.14 and of a kind used in refrigerating and air- conditioning appliances and machinery, heading or sub-heading Nos. 84.15, 84.18, 8422.10, 8424, 89.29 to 84.37, 84.40, 84.50, 84.52, 84.69 to 84.74, 84.76, 84.78, expansion valves and solenoid valves falling under sub-heading No. 8481.10 of a kind used for refrigerating and air conditioning appliances and ma- (b) (c) (e) (f) (g) (h) TABLE S. No. Description of capital goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and used in the factory of the manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by the expression 'capital goods' except those under sub-heading No. 84.15 and so on. It would further be necessary to peruse Chapter Heading No. 84.15 of Chapter 84 which show that air conditioning machine etc. have been mentioned therein. Sub-heading 84.15 of Chapter 84 is reproduced hereunder for facility of reference:- "Tariff Item Description of goods Unit Rate of duty (1) (2) (3) (4) 8415 8415 10 8415 10 10 84151090 841520 84152010 841520 90 841581 84158110 84158190 8415 82 841582 10 84158290 841583 8415 83 10 84158390 8415 90 00 Air-conditioning machines, comprising a motor driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the view that entry 84.15 is excluded and all the goods mentioned therein would be qualified for claiming Modvat Credit. 8. The argument of the learned counsel for the dealer-appellant that it is covered by entry 84.18 is wholly misconceived because it proceeds on the basis of a printing error in the Gazette notification dated 9-3-1997 wherein Sr. No. 2 of the table in the excepted item instead of 84.18, 85.18 has been erroneously printed. The entry has to be regarded as a mis-print because under Sr. No. 2 of the table only entries excluded from chapter 84 have been mentioned. The entries concerning chapter 85 are dealt with in the next Sr. No. 3. Therefore, it does not stand to reason to say that since the entry 84.18 has not been mention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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