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TMI Blog2004 (4) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... capital goods. The revenue filed an appeal against the said order of the Assistant Commissioner before the Commissioner (Appeals). The said authority rejected the appeal, after considering the detailed manufacturing process and after taking into consideration the CBEC's Circular and also the various decisions of the Tribunal. For better appreciation paras 3, 4, and 5 of the order which are produced below :- "I have carefully considered the facts of the case, the grounds of review, the findings of the adjudicating authority and the law on the subject. On regarding of the definition of Machinery as given in Oxford American Desk Dictionary as machines collectively, components of the machine, mechanism. Further, the word "machinery" prima fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticle to be manufactured. However, since the materials injected in the mould is in the molten form and the same is very hot before the article is shaped and taken out of the mould, the same is to be first cooled down and then only the article can take shape of the cavity of the mould and can be removed from mould. Moreover, during the process the mould and machine also gets heated, which is required to be cooled down or else the same will not function. These cooling operations which are highly essential are carried out with the help of water chilled in the Cooled Water Chillers. I find that the department has filed review appeal for denial of Modvat credit on Water Cooled Water Chillers, as capital goods under Rule 57Q, for the reason tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same view is also taken by the Hon'ble Tribunal in the case of CCE, Jaipur v. Sunil Synchem Ltd. - 1999 (107) E.L.T. 176 (Tr.) and the ratio of these cases more than apply in the instant case as the machines in question Cool Water Chiller twin (water chiller machine) are directly controlling the moulds made in the Plastic Injection Moulding machine by its nature of cooling the said moulds without which the "moulds" could not be formed consistently/accurately/properly in a uniform size and shape. I find that the scope of eligibility to Modvat credit on capital goods under the provisions of Rule 57Q have been considered by the Court and the Tribunal in series of judgments. A more broader inclusion has been found to have been provided unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n allowed on the ground that the same is in accessory and the appellate authority has discussed in detail the role played by the cooled water chiller twin. It is seen that during the injection mould process for manufacture of the moulded plastic articles, specific material in granular form is fed into the screw barrel of the injection unit, which is fitted with high temperature heaters as a result of which the plastic raw materials melt. This molten material fills the cavity of the mould and is hot, the same is first cooled down and then only the article can take shape of cavity of the mould and can be removed from mould. These cooling operations are done with the help of item in question. As such, it has to be necessarily concluded that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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