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TMI Blog1999 (3) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... ment was of the view that these goods were not capital goods and therefore, were not eligible for Modvat credit under Rule 57Q. 3. Learned DR also stated that definition of capital goods during the period 1-4-1994 to 1-3-1994 (sic) is required to be kept in view. The provision of this rule apply to finished excisable goods of the specified description for the purpose of allowing credit of specified duty paid on the capital goods used by the manufacturer in his factory. 4. It is quite evident that key words in the definition of capital goods are - - Machines, machinery, plant, equipment, apparatus, tools or appliances. - Used for producing or processing of any goods or for bringing about any change in any substances for the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 (S.C.) would not be applicable for interpretation of the definition of capital goods under Rule 57Q. Similarly the ratio in the case of IFFCO Ltd. v. C.C.E., Ahmedabad as reported in 1996 (86) E.L.T. 177 (S.C.) would not be applicable since the Apex Court in that case was interpreting on all embracing phrase viz. in the manufacture of which is pari materia with the words used in the definition of the term `inputs defined under Rule 57A. 7. Now coming to the phrase; machine, machinery, plant, equipment, apparatus, tools, appliance. The dictionary meaning of each item is well known. 8. However, the Hon ble High Court of Calcutta have in Singh Alloys Steels Ltd. while applying the principle of ejusdem generis while interpreting the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of the finished product in terms of Rule 57Q(1)(a) (b). - applies to goods specified in terms of explanation clause (d) to Rule 57Q after 16-3-1995 (i.e. the date when the said clause (d) was added) to such goods, if used in the factory of the manufacture. - The aforesaid ingredients as summarised above in relation to the capital goods find support from the Tribunal decision mentioned below : (a) Shamguraja - 1997 (89) E.L.T. 84 (Tribunal) (b) Modiakalies - 1996 (88) E.L.T. 555 (Tribunal) (c) J.K. Pharmaceutical Ltd. - 1998 (102) E.L.T. 488 (Tribunal) = 1997 (21) RLT 868 (Tribunal). In view of the above it is submitted that items for Modvat credit as capital goods under Rule 57Q during the period 1-4-1994 to 28-2-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plant. In order to prevent these air curtains are used and are thus essential in ensuring the process of production is carried out in the prescribed manner. Air curtains are essential capital goods which are used for producing or processing of goods in terms of Rule 57Q. 12 (III). Without prejudice to its aforesaid submissions and in the alternative, the respondents submitted that if the air curtains are not capital goods for the purpose of Rule 57Q, then in that it is eligible as inputs under Rule 57A since it is definitely used in or in relation to the manufacture of the polyester fibre and chips and is an essential input in the process of manufacture.The Asstt.Collector in his findings has accepted that the air curtains used in the pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of Rule 57A or 57Q is secondary. If the item is treated as capital goods, it has to be allowed under Rule 57Q and if not it has to be allowed under Rule 57A but it would not be excluded from the purview of Modvat scheme till essential requirements of the scheme were duly satisfied. The learned Counsel has in the above circumstances justifiably pleaded that while they have asked for the benefit in terms of Rule 57Q if the department thinks that it is not covered by 57Q, it was required to consider the matter with reference to 57A but their interest is to see that Modvat credit due to them is received by them. 16. I also observe that there has been a difference of opinion within the Tribunal as to whether a narrower (or stricter) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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