9911796707
TMI Blog2003 (4) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order per : G.A. Brahma Deva, Member (J)]. Whether components-parts of Air Conditioning Plant are eligible to avail Modvat credit in terms of Rule 57Q of Central Excise Rules, 1944 is an issue to be considered herein. 2. Shri R. Raghavan, learned Advocate appearing for the appellants submitted that Air Conditioning Plant is essential for the purpose of completion of the process of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocess of manufacture i.e. was used in the process which was integrally connected with ultimate manufacture of final product but for the process of manufacture or processing of goods would be inexpedient was also required to be applied while considering whether an item could be treated as capital goods for the purpose of Rule 57Q. In the present case the appellants have shown and the ld. Collector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e next contested item is air conditioner on which duty involved is Rs. 3,09,600/-. The Commissioner observed that it did not fall under explanation 1(b) to Rule 57Q. The assessees say that it is a must to protect the sensitive equipments in the blast furnace control room and PLC system room. In the citation of Pharmasynth Formulation Ltd. (1999 (107) E.L.T. 66), the Tribunal was dealing with this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to directly or indirectly participate in the production of pig iron but it was used for peripheral purpose. In the instant case there is no such finding. Furthermore, since the Commissioner has held that Air Conditioning Plant is eligible for Modvat credit in terms of Rule 57Q, there is no justification to deny the Modvat credit for components of Air Conditioning Plant as rightly pointed out by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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