9911796707
TMI Blog2001 (12) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... pite of notice. The respondent is represented by ld. SDR Sh. Atul Saxena. We have examined the grounds of the present application vis-a-vis the finding recorded in the Final Order. We have also heard ld. SDR. 3. The appeal was against the order of the Commissioner (Appeals), which had denied capital goods credit to the party on air-conditioners brought into and installed in their factory during November - December, 1995, on the ground that air-conditioners stood excluded from the coverage of the definition of 'capital goods' under Rule 57Q by virtue of Clause (d)(iv) of Explanation (1) to sub-rule (1) of the rule. This decision of the lower appellate authority was upheld by this Tribunal as per the Final Order ibid. The present applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s item was distinct and different from air-conditioner falling under Heading No. 84.15. Therefore, the Tribunal's finding as recorded in its Final Order ibid to the effect that air-conditioners stood specifically excluded from the purview of the definition of capital goods by virtue of Notification 11/95-C.E.(N.T.) is patently erroneous. We further observe that, in the Final Order under reference, the applicability of the provisions of Clause (a) under Explanation (1) to Rule 57Q was not examined by the Tribunal. Yet another mistake apparent from the record. As per Clause (a), capital goods meant machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any chan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be looked into and settled at the level of the adjudicating authority on the basis of proper physical verification. If it be found that the air-conditioners were used to regulate the room conditions of temperature, humidity and/or other factors so as to make them congenial to the process of manufacture of medicines in the factory, then the air-conditioners would qualify for Modvat credit in terms of Clause (a) ibid. 4. We, therefore, set aside the order of both the lower authorities and allow this appeal by way of remand, directing the adjudicating authority to decide afresh on the above question after proper verification. The adjudicating authority shall pass a speaking order, after affording a reasonable opportunity of being heard, to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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