1999 (8) TMI 195

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..... o be considered in this case is whether jib crane can be considered as eligible capital goods to avail Modvat credit 2. Following the series of decision of the Tribunal the Commissioner (Appeals) held that any machinery/equipment used for handling the raw materials and final product inside the factory during the process of manufacture is capital goods and that not only such machines but any comp .....

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..... ualify for credit under Rule 57Q. In respect of such capital goods, it has been provided that so long these are used in the factory of product, credit will be allowed, without the need to establish as to whether such capital goods are used in the manufacture of finished goods. It may be clarified that any equipment etc. purchased by a manufacturer but not used within the factory will not be admiss .....

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..... assessees that the items which are recognised as eligible to capital goods credit by Notification 14/96 are items covered by Explanation 1(a) and it cannot be contended by the Revenue that these items are not covered by the Headings mentioned in Notification 14/96 or that the items are not capital goods within the meaning of Explanation 1(a) under Rule 57Q as it stood during the relevant period. .....

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