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TMI Blog2003 (1) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... d motor vehicles. They claimed Modvat credit of the disputed amount on parts/components of the air-conditioning system and aluminium grills, apart from other items/goods (not the subject matter of the present appeal). On in aluminium grills, they claimed the Modvat credit on the ground that the same had been installed in the paint shop for proper flow of air to ensure good quality painting of the final product, while on the parts/components of air-conditioners on the ground that the air-conditioners maintain temperatures and conditions suitable for running of the machines in the factory. The Assistant Commissioner disallowed the credit on the ground that these goods did not satisfy the definition of the 'capital goods' for having no relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lay in or in relation to the manufacture of the final products i.e. two wheeled motor vehicles. Even the learned Commissioner (Appeals) has disallowed Modvat credit on these grills. But the learned JDR has not been able to disclose as to how the revenue has challenged the order in respect of these goods, when it is in their favour. The learned Counsel has also conceded that on aluminium grills, Modvat credit has not been allowed to the respondents and no cross-objections had been filed by the respondents for questioning the correctness of the order of the Commissioner (Appeals) in this regard. 6. Regarding the parts/components of the air-conditioning system, in my view, the Commissioner (Appeals) has wrongly allowed the Modvat credit. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genial atmosphere for manufacture of watches could not be termed as capital goods. The ratio of the law laid down in both the cases very aptly apply to the case of the respondents. The law laid down in Pharmasynth Formulations Ltd. v. CCE, New Delhi (supra) referred by the Counsel and also relied upon by the Commissioner (Appeals), is not attracted to the facts of the present case as in that case, installation of the air-conditioner was found to be essential and necessary for the production of the final product. But such is not the position in the present case. Similarly, the ratio of the law laid down in CCE v. Jawahar Mills Ltd. (supra) is not of any help to the respondents as in that case, the goods involved were power cables, capacitors ..... X X X X Extracts X X X X X X X X Extracts X X X X
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