COMMISSIONER OF CENTRAL EXCISE Vs. U.T. LIMITED

JUDGEMENT

(1.) The issue regarding the eligibility of Modvat credit on capital goods that is air conditioner was referred to the Larger Bench after noticing the contrary decision in the case of ITI Ltd. v. C.C. and in the case of Jaypee Bela Plant v. C.C.E., Rapur .

(2.) WE find that Modvat in respect of capital goods was introduced in the year 1994. The definition of capital goods under Rule 57Q of the Central Excise Rules has undergone change in enormous state. In the present case, the dispute is for the period June 1995 on which we are concerned with the definition of capital goods during this period. During this period, the definition of capital goods is as under: