9911796707
TMI Blog1998 (6) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... is correct in allowing Modvat credit on insulated copper cables which is neither used for producing nor processing nor for bringing about any change in any substance as defined under the explanation to Rule 57Q? 2. Whether the Hon ble CEGAT is correct in holding that `Insulated Copper Cables is capital goods and entitled to Modvat credit, which only transmits power to machinery from an outside source and does not qualify to be processing in or in relation to manufacture? 3. Whether Hon ble CEGAT is correct in allowing credit on insulated cables in the light of CEGAT s decision in the case of Commissioner of Central Excise v. Nova Udyog Ltd. reported in 1996 (88) E.L.T. 532 (Tribunal) when the said order has been appealed against and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and cables are part of the main machine. He also submits that apart from relying upon the case of Nova Udyog the Bench has also referred to another decision of the Tribunal in the case of Abi Photochem Ltd. v. C.C.E., Pune reported in [1997 (93) E.L.T. 439 (Tribunal) = [1997 (20) RLT 331 (WZB)]. He also submits that the said decision of the Nova Udyog is being constantly followed by the Tribunal in a number of cases and makes a reference to the Tribunal s decision in the case of Kanoria Chemicals and Industries Ltd. v. C.C.E., Allahabad. In view of his above submissions he prays that the question whether the wire and cables used for transmission of power are essential for running the machinery, plant etc. or not is a pure question of law an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, of the capital goods as can be seen from the explanation, it is clear that not only the machines which are bringing about any change, but also components or accessories of the above machines used for the above purpose, are capital goods. I also find that in another case of Avi Photochem Ltd. v. Commissioner of Central Excise, Pune reported in 1997 (93) E.L.T. 439 (Tribunal) = 1997 (20) RLT - 331 (CEGAT-WZB), Densitometer, an instrument used for testing density of chemicals to ensure their requisite strength and position, has been held to be capital goods. In the instant case, the Tribunal has observed that though there was no doubt that the Densitometer does not by itself produce or process any goods or bring about any change in any sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84.12, 84.16, 84.17, 84.19, 84.21, 84.23, 84.25 to 84.28, 84.80, 85.05, 85.35, 90.11, 90.12, 90.13, 90.16, 90.17 and 90.24 to 90.31. However, I am concerned with the period prior to the amendment of Rule 57Q viz. for the period prior to 16-3-1995. From the above, I agree with the contention of the Revenue that the question of law as framed in the reference application arises for reference to the Hon ble Delhi High Court for decision by the Hon ble Delhi High Court. The reference application is allowed. 6. As the issue involved in the instant case as also in the case of Nova Udyog is identical and the matter has been referred to in the High Court in the Nova Udyog case I agree with the contention of the ld. JDR that the issues framed in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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