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TMI Blog2001 (1) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor of Central Excise, Calcutta - 1996 (86) E.L.T. 613 and Jawahar Mills Ltd. v. Collector of Central Excise, Coimbatore - 1999 (108) E.L.T. 47. Thereupon, the appeal was directed to be posted before a Bench of five Members to resolve the apparent conflict in the decisions in the above mentioned two cases. 2.The East Zonal Bench by Order No. A-330, dated 30-3-1998 directed to place the issue relating to the scope and ambit of Notification 217/86-C.E., dated 2-4-1986 before the President for constituting a Larger Bench. In deference to that order, the issue has been referred to a Larger Bench. 3.As stated in the preceding two paragraphs, the present Larger Bench of five Members has been constituted. We heard learned Counsel representing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that any machine, machinery, plant, equipment, apparatus, tools or appliances if satisfy any one or more of the three conditions mentioned therein, such "capital goods" will be entitled to Modvat credit. Not only the complete machines, machinery, plant, equipment, apparatus, tools or appliances falling under clause (a), their components, spare parts and accessories are also to be treated as capital goods entitled to Modvat credit. The only condition that is to be satisfied for clause (b) to come into play is that components, spare parts and accessories must be of machines, machinery, plant, equipment, apparatus, tools or appliances used in one of the functions mentioned in clause (a). Over and above the above mentioned two categories falli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the expression "machine" mentioned in that Chapter is only for those machines falling within the headings of Chapter 84 or 85 of the Tariff. Learned Departmental Representative did not advance an argument that there can be no machinery outside Chapters 84 and 85, which can he termed as "capital goods". Therefore, the Section Notes to Section XVI in the Central Excise Tariff Act cannot be the basis for deciding capital goods dealt with in Rule 57Q. In view of the definition of "capital goods" given in Rule 57Q, the said goods should be understood as defined in that Rule and not restricted or circumscribed by the Notes to Section XVI of the Tariff Act. Further, machines, plant, equipment, apparatus and tools are not dealt with by Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "inputs", certain items were specifically excluded by stating "but does not include". Item 1 in the category of goods which were excluded from inputs was machines, machinery, etc. coming under clause (a) of the Explanation seen in Rule 57Q. Clause (b) in the Explanation seen in Rule 57Q was not dealt with as an item which was to be excluded from the ambit of "inputs" falling under Rule 57A. Therefore, the question, which was dealt with by this Tribunal in Union Carbide India Ltd. case was the exact significance and amplitude of the expression "input" and not in respect of the capital goods with which Rule 57Q dealt with. Since this Tribunal did not apply its mind to the scope and ambit of definition of "capital goods" seen in Rule 57Q of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ination, can wires and cables be termed as "plant." Even conceding for argument sake that the said statement made by the learned Departmental Representative is correct, wires and cables if form components, spare parts or accessories of plant, will qualify for Modvat credit as capital goods. This is so because of clause (b) to the Explanation of "capital goods." 11.Learned Departmental Representative advanced an argument that the capital goods in respect of which Modvat credit is claimed should satisfy the conditions mentioned in the latter part of clause (a) invoking the principle contained in the maxim "noscitur a sociis". We are at a loss to understand how the said maxim can be pressed into service in the instant case. What the said max ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification with effect from the date of the notification. 13. In view of the findings reached by us as stated hereinabove, we do not find any conflict in the decisions of this Tribunal in the cases of Union Carbide India Ltd. v. Collector of Central Excise, Calcutta reported in 1996 (86) E.L.T. 613 and Jawahar Mills Ltd. v. Commissioner of Central Excise, Coimbatore - 1999 (108) E.L.T. 47. Notification No. 217/86-C.E., dated 2-4-1986 is in relation to inputs. Availability of Modvat credit in respect of inputs is covered by the decision of this Tribunal in Union Carbide India Ltd. case. Those goods which are claimed as inputs cannot get Modvat credit as capital goods. 14.The questions referred to the Larger Bench are answered as above. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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