TRACTORS AND FARM EQUIPMENT LTD. Vs. CCE

JUDGEMENT

(1.) Whether silicon graphics is eligible capital goods or not to avail modvat credit in terms of Rule 57Q is an issue to be considered herein.

(2.) It was the contention of the party that 84.71 excludes computer. Nevertheless, if the computer is a part or an accessory to the equipment/machinery which has been used in the process of manufacture and same is eligible. In the instant case, silicon graphics has been used as an accessory of CNC machine and accordingly, same is eligible.

(3.) The Counsel submitted that the authorities below have proceeded to pass an order rejecting the claim of the party on the ground that silicon graphic itself is not engaged in the production of final products and hence modvat credit cannot be utilized on it.