9911796707
TMI Blog2000 (5) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the purpose of taking credit under Rule 57Q. The Commissioner in his appeal questioned the eligibility to be considered as capital goods of items for which the Commissioner has allowed the credit. 3. We shall first take up the department's appeal. The contention on this appeal is that none of the goods in question is directly used for producing or processing of any goods or bringing about any change in substance for the manufacture of the finished goods and that therefore the primary requirement contained in Rule 57Q for this goods to be considered capital goods is not satisfied (sic). It is contended that the determination of whether the goods are capital goods or not has to be made on the basis of Rule 57Q as it stood prior to its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o come to a clear conclusion. These items are paints/thinner, aluminium articles, sacrificial electrodes and belt scrapper. The department's appeal on the ground that no finding has been given on these items is not challenged by the respondent, has to be accepted. We, therefore, allow this ground of the appeal and direct consideration now by the Commissioner on these items. These goods must be added items covered by the goods listed in Annexure B of the show cause notice, referred to by the appellant, on which no finding has been given. 7. We now come to the appeals filed by the assessee. The Commissioner (Appeals) has disallowed credit on transformer oil on the ground that it is only used for smooth functioning of the transformer. The ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 196 = 1999 (35) RLT 264] has held these goods to be capital goods. They would, therefore, entered in the Tariff Entry. 9. Credit has been denied on stationary battery and battery chargers (sic) on the ground that these are only safety device. The battery is used as back up for providing electric supply in the case of power failure to the digital control system in the factory so that the production processes are not halted. Given the reality of irregular and uneven power supply, it is rather unrealistic to say that the battery is only a safety device. It has to be borne in our mind that any battery of any size provides for power supply. We, therefore, of the view that the battery is to be considered on par with other electricity distributi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
