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TMI Blog2008 (6) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner. S/Shri Rajesh Kumar and S.K. Posti, Advocates, for the Respondent. [Order per: Prafulla C. Pant, J. (Oral)]. - This appeal, preferred under Section 35G of the Central Excise Act, 1944, is directed against the order dated 27-9-2005 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (hereinafter referred as CESTAT) in Appeal No. E/2782/03-NB(S), whereby the appeal of the revenue (present appellant) was partly allowed. 2. Heard learned counsel for the parties. 3. Brief facts of the case are that respondent M/s. India Glycols Ltd. are manufacturer of Glycol and other industrial chemicals. During the period 1994-95 (upto Feb., 1995) they availed Modvat credit to the tune of Rs. 14,73,523/- toward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de impugned order dated 27-9-2005, whereby except for the safety tools [mentioned at Sl. No. (vi) above with Heading No. 82.05], the exemptions allowed by the Commissioner (Appeals) in respect of the rest of the five items claimed under definition of 'Capital goods' were affirmed. 4. The question of law raised before this Court is whether, the CESTAT has erred in law in applying the Notification No. 11/95-C.E. (N.T.), dated 16-3-1995, retrospectively for the year 1994-95, and in affirming the exemption granted by the Commissioner (Appeals) in respect of the laboratory homogenizes, lab scientific/hospital equipments; module of Chapter Heading No. 85.38; gas detection systems of Chapter Heading No. 85.31; lube/sealant of Chapter Heading N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 1st day of March 1994. ANNEXURE All goods specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than the following, namely (i) All goods falling under Chapter 24, 56, 57, 58, 60, 61, 62 or 63; (ii) All goods falling under heading Nos. 36.05, 37.06, 50.02, 50.03, 51.01, 51.02, 51.04, 51.06, 51.07, 51.08, 52.01, 52.02, 52.05 to 52.12, 53.02, 53.05 to 53.08, 54.08 to 54.12 and 55.07 to 55.12; (iii) All goods falling under sub-heading Nos. 5001.10, 5301.10, 5301.20, 5301.90, 5303.10, 5303.20 and 5303.90." The aforesaid definition was amended vide Notification dated 16-3-1995, and clause (d) and clause (e) were added to the existing definition of 'capital goods'. The same are reproduced, hereunder: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the amended definition is a prospective one, as such, its retrospective application made by the Commissioner (Appeals) and CESTAT, is erroneous in law. And, on its basis it is argued that the Modvat credit to the tune of Rs. 58,179/- on the items, namely laboratory homogenizes, lab scientific/hospital equipments and gas detection systems, which was admittedly used by the assessee for research and development activity, is erroneous. 8. In reply to this, learned counsel for the respondent (assessee) drew attention of this Court to the principle of law laid down in Commissioner of Central Excise, Coimbatore v. Jawahar Mills Ltd.; 2001 (132) E.L.T. 3 (S.C.), and argued that since the definition of expression 'capital goods' was l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the above observations of the Apex court while interpreting the expression 'capital goods' defined in Rule 57Q for the period prior to 1994-95 makes it abundantly clear that by adding clause (d) and clause (e) vide amendment dated 16-3-1995, practically the situation did not change as under clause (a) of Rule 57Q, definition of "capital goods" remained liberal, as it included machine, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product. Similar view was taken by the Madras High Court in Siv Industries Ltd v. Commissioner of Central Excise, Coimbatore - 2001 (129) E.L.T. 48 (Mad.). 9. Havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... medical use) 90.24 to 90.31 and 90.32), (other than of a kind used for refrigerating and air conditioning appliances and machinery); (d) components, spares and accessories of the goods specified against items (a) to (c) above; (e) moulds and dies: (f) refractories and refractory materials; (g) tubes and pipes of iron and steel or copper or aluminium used for conveying inputs, on which credit of duty is taken, intermediate goods or final products in the factory; and (h) pollution control equipment." 10. In view of the definition of 'capital goods' as it existed prior to 23-7-1996, and accepted by the Apex court in Commissioner of Central Excise, Coimbatore v. Jawahar Mills Ltd. (supra), we are of the view that the CESTAT has c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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