2005 (5) TMI 445

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..... he Respondent. [Order (Oral)]. - This appeal of the Revenue is against grant, by the Commissioner (Appeals), of the benefit of capital goods credit under Rule 57Q of the Central Excise Rules, 1944 to the Respondents in respect of Air Conditioning machinery for the month of March 99. It is submitted by the appellant that, under the Rule as it stood in March 99, Air Conditioning machinery falling .....

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..... essee in respect of Air Conditioning machinery. The appellate authority has simply allowed the credit after making the observation that AC machines are eligible capital goods under Modvat Scheme on account of the fact that they are directly linked to production activity. The view taken by the Commissioner (Appeals) is correct for the period prior to 1-3-97 but cannot be accepted for the month of M .....

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..... Bhopal reported in 2004 (178) E.L.T. 455 (Tri. - Del.) wherein a similar dispute was remanded to the original authority' for fresh adjudication with reference to Board's Circular dated 2-12-1996. 3. I have perused the Board's Circular relied on by the learned Single Members of the Tribunal in the cases of Bhushan Steel Strips Ltd. and HEG Ltd. (supra). This Circular clarified the provisions .....

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