COMMISSIONER OF CENTRAL EXCISE Vs. GABRIEL INDIA LTD.

JUDGEMENT

(1.) This appeal by Revenue is directed against Order -in -Appeal No. 121/2000 (M -III), dated 15 -9 -2000 by which the learned Commissioner (Appeals) has held vide para 5(v) that Modvat credit is to be allowed after verification of the documents on the ground that the air -conditioner was necessary for running the 3D machine under proper temperature and the R and D items are in the nature of quality control equipments which are essential for the manufacture of quality products. With this observation, the learned Commissioner held that they are used in or in relation to the manufacture of the final products.

(2.) Aggrieved by this order, the Revenue has come in appeal on the ground that the part of the decision of Commissioner of Central Excise (Appeals), Chennai allowing the Modvat credit on air -conditioners under Rule 57Q vide para 5(v) of the impugned order is not legal and proper on the following grounds : -

(3.) In view of above grounds, the revenue prays that the impugned order passed by the Commissioner Central Excise (Appeals), Chennai in respect of the air -conditioner directing the lower authority to extend the credit after verification and allowing the appeal of M/s. Gabriel India Ltd., Hosur be set aside and that portion of the Order -in -Original No. 64/98, dated 4 -2 -99 passed by the Assistant Commissioner of Central Excise, Hosur II Division holding that credit is not extendable to the above impugned items be restored.