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TMI Blog2012 (7) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 25-5-2012 - Sanjiv Khanna And R V Easwar, JJ. For Appellant : Mr. Aditya Kumar and Mr.Pravesh Bahuguna, Adv For Respondent : Mr.Kamal Nijhawan, Adv JUDGEMENT Having heard counsel for the parties, we frame the following substantial question of law:- "Whether Customs, Excise and Service Tax Appellate Tribunal was right in holding that the appellant is not entitled to Modvat credit under Rule 57Q of the Central Excise Rules, 1994 on the CNC wire cut machine on the ground that it is used for manufacture of intermediary products and not the final products" 2. The appellant had purchased one electric 'CNC wire cut electric discharge machine' on 14.3.1995 and had filed a declaration under Rule 57(T)(1) of the Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t entitled to modvat credit of Rs. 1,30,000/- and it was liable to pay interest, penalty etc. 6. Rule 57Q as it existed during the relevant time was as under : - "57Q. Applicability. - (1) The provisions of this section shall apply to finished excisable goods of the description specified in the Annexure below (hereinafter referred to as the ?final products?) for the purpose of allowing credit of specified duty paid on the capital goods used by the manufacturer in his factory and for utilising the credit so allowed towards payment of duty of excise leviable on the final products, or as the case may be, on such capital goods, if such capital goods have been permitted to be cleared under rule 57S, subject to the provisions of this section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or (b) processing of goods or (c) to bring about change in any substance for the manufacture of final products. The machine in question, as noticed above, and as per the finding recorded by the Tribunal, is used for manufacture of dyes/tools which are used for manufacture of laminates and stamping. The said lamination and electrical stamping is also done by the appellant, i.e., for manufacture of the final products. The tools and dyes were required as every customer who approaches the appellant requires laminates or stamping with his name, logo etc. and for this purpose tools and dyes have to be first produced and manufactured as per the needs and requirements of the customer. Then, and thereafter lamination and stamping is possible. The wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Supreme Court in Commissioner of Central Excise Vs. Jawahar Mills Ltd., 2001 (132) E.L.T. 3 (S.C.) , in which the term capital goods was examined and it was observed as under;- "4. The aforesaid definition of 'Capital goods' is very wide. Capital goods can be machines, machinery, plant, equipment, apparatus, tools or appliances. Any of these goods if used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product would be 'Capital goods', and therefore, qualify for availing Modvat credit. Per clause (b), the components, spare parts and accessories of the goods mentioned in clause (a) used for the purposes enumerated therein would also be 'Capital goods' and quali ..... X X X X Extracts X X X X X X X X Extracts X X X X
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