9911796707
TMI Blog1997 (1) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... been filed by the different appellants against the adjudication orders of the Assistant Commissioner of Central Excise details of which are furnished in the Annexure. The grievance of the appellants here is that the AC has disallowed capital goods credit in respect of air conditioners in their cases. Almost all the appellants have also filed stay applications for waiver of pre-deposits of the duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on the impugned items as mentioned in the annexure can be sustained in law, or not. As discussed below, I am deciding the main appeals without any hearing in the other appeals. 3. In terms of the Explanation under Rule 57Q, capital goods means machinery, apparatus, tools, appliances, etc. used for producing or processing of any goods or for bringing about any change in any substance for the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal goods and rejected Modvat credits on the same stating that the air-conditioners are not used in the manufacture of any final product. It is not used in relation to the manufacture of any intermediate product either. As such the ACs refused to consider these items as capital goods for the purpose of Rule 57Q, and accordingly held that the appellants were not entitled to the credit of duty paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be air-conditioned and also dehumidified. It is further stated that the manufacture and filling (in respect of eye-lotions and other preparations for external use) shall be carried out in an air-conditioned room under aseptic conditions. Therefore capital goods credit has to be extended here. 5.(b) Similarly the appellant in Appeal Nos. 36/96(M) and 189/96(M) also would be entitled to capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso have to be taken as required for use in or in relation to the manufacture of the final product and eligible for capital goods credit. 6. Since the items are being extended the credit, there is no warrant for penalty in appeal Nos. 31/96 (CBE) and 36/96 (CBE), which are vacated in full. 7. Since the appellant in the first appeal 30/96 have already expunged credit of Rs. 6450/- on the plasti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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