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TMI Blog2000 (1) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... the Explanation below Rule 57Q(1) . 2. The Departmental Representative explains that since it is evidently the intention of the rule makers that not all goods which may be required in the manufacture of goods, or any process ancilliary or subsidiary thereto, are to be considered to be capital goods. It is only those goods of the categories referred to in the Explanation used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products that are to be considered as capital goods. The goods under consideration in the Tribunal's order are in the nature of an equipment or machinery for distribution of electricity or in the case of motors for conversion of this energy into me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich can be cleared up by means of the Explanation below Rule 57Q. The sub-rule extends the provision to AA of Chapter V apply to for the purpose of availing duty credit on capital goods used by the manufacturer in its factory and for utilising the credit towards duty on final product. It is only the Explanation that defines the meaning and scope of the term capital goods . If there is any ambiguity, it is in the Explanation itself and not in the rule. 5. It could be argued that the Explanation of capital goods contained in sub-clause (a) of clause (ii) of the Explanation is limited only to those goods which are directly used for producing goods or processing goods for the purpose of producing goods. It defines capital goods as meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same machinery sub-serve both the purposes. Electrical motors for example may be used to pump out waste material or by product and therefore not produced or processed any goods. 8. After discussion, both sides have agreed that the question proposed should be reformulated as follows: "Whether electric distribution equipment such as transformers, cables, fuses and electric motors and parts which may not by themselves be used for producing or processing or for bringing about any change in any substance in the manufacture of the final product but without which, having regard to the mordern technology such production or processing of goods for manufacture of final product is not possible, are capital goods within the meaning of clause (a) to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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