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TMI Blog2002 (11) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... Cleaning Machine (CET Heading 84.24) (ii) Compressor, stop valves, drive set, V-belt - all parts of a refrigeration system. 4. Ld. Commissioner (Appeals) held that the Steam Jet Cleaning Machine was not covered as capital goods under Rule 57Q ibid by reason of its classification under CET heading 84.24. He was, impliedly, relying on Clause (d) of Explanation (1) to Rule 57Q(1) as the rule stood at the material time. Insofar as the compressor and other components of the refrigeration system are concerned, ld. Commissioner (Appeals) observed that they were not covered under the definition of capital goods, but he did not state any explicit reason. In this appeal against the decision of the Commissioner (Appeals), the appellants have r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecifically included in the coverage of capital goods, ld. Counsel submits that the cleaning machine was squarely covered under Clause (b) of the Explanation and hence eligible for Modvat credit. He submits that, if the cleaning machine is not used, the manufacturing plant would be rendered unhygienic on account of bacterial putrefaction of sugar syrup. Any such unhygienic condition would not be desirable for the final product, for which such norms of hygiene as prescribed under the Food Products Control Order were necessary to be maintained. The Steam Jet Cleaning machine was, therefore, a part of the manufacturing plant. If it could not be treated as a part of the manufacturing plant, it would, in any case, be an accessory to the plant. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Ld. JDR has strongly defended the order of the Commissioner (Appeals). In relation to the Cleaning Machine, his submission is that the machine was not used during the course of the manufacturing process. Only those goods which were used during the course of the manufacturing process could be treated as eligible capital goods under Rule 57Q for Modvat credit. With regard to compressor, the DR would like to press into service Clause (d) of Explanation to Rule 57Q(1), whereunder compressors other than of a kind used in refrigeration and air-conditioning were recognized as eligible capital goods. It is the argument of the DR that a compressor used for refrigeration purpose stood excluded from the coverage of eligible capital goods. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, the coverage of the goods in Clause (b) was not affected by anything contained in Clause (d) and hence the item was eligible for Modvat credit in terms of Clause (b). The Board Circular relied on by the Counsel is in support of this position. I also note that the decision of the Tribunal s Larger Bench in Eureka Forbes (supra) supports the argument of the counsel that the Jet Cleaning Machine could be treated as an accessory to the manufacturing plant of the appellants. In the result, I hold that the Cleaning Machine under reference, whether as part or as accessory of the plant, was eligible for Modvat credit in terms of Clause (b) of the Explanation to Rule 57Q(1). As regards the compressor and allied items, it is the finding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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