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TMI Blog1999 (11) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... orities held that these items are capital goods whereas the Department has filed an appeal against the findings of the authorities below claiming that they are not capital goods for the purpose of Modvat credit under Rule 57Q of the Central Excise Rules, 1944. The reasons adduced by the Revenue are that insofar as vacuum circuit breakers are concerned, they cannot be considered as a part and component of the plant/machinery if it has a specific functional utility with reference to the plant and the machine. It has been contended that circuit breaker makes and breaks the circuit under normal condition; that it also isolates and protects the electrical system during fault condition and as such cannot be said to be used for processing or produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as well as their components, spares, parts and accessories. It has also been contended that these are not for producing or for processing of any goods or for bringing about any change in any substance. The Department has contended that accessory had been defined by the Apex Court in the case of M/s. Annapurna Carbon Ind. Co. v. State of Andhra Pradesh [1976 (37) STC 378 (S.C.)]. It has also been contended that insulated wires and cables were not covered under any Heading or sub-heading given in the Explanation under Section 57Q. It has also been contended that the Tribunal has already accepted that a point of law arises in holding whether wires and cables were covered by the Explanation or not. 3. Shri R. Sudhinder, the learned Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fically covered by the Larger Bench decision in the case of Jawahar Mills. He submitted that all electrical items cannot be capital goods for that matter all items cannot be capital goods. He submits that the same item may be capital goods for one purpose as used but cannot be capital goods if it is used for a different purpose. He submits that vacuum circuit breakers are only used for making and breaking the circuit to protect the machinery. Insofar as electrical wires and cables are concerned, he submits that adequate points have been made in the grounds of appeal. He, therefore, prays that the appeals may be allowed. 5. We have heard the rival submissions. We note that insofar as wires and cables are concerned, the case is fully covere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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