SURYA PHARMACEUTICAL LTD. Vs. COMMR. OF C. EX.

JUDGEMENT

(1.) THE dealer -appellant has approached this Court by filing instant appeal under Section 35G of the Central Excise Act, 1944 (for brevity, 'the Act') challenging order dated 3 -7 -2006, passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (for brevity, 'the Tribunal'). The Tribunal has held that the dealer -appellant would not be entitled to Modvat Credit in respect of spare and parts of two chilling plants, which have been erected by the dealer -appellant. The rationale adopted by the Tribunal is that Modvat Credit as per the requirement of Rule 57Q Explanation (1)(a) of the Central Excise Rules, 1944 (for brevity, 'the Rules'), is admissible on 'capital goods'. However, the Rule has excluded from the benefits of Modvat Credit items under Chapter Heading 84.15.

(2.) THE short question which arises for determination in this appeal is whether spare parts used by the dealer -appellant for erecting two chillers are covered under Chapter Heading 84.15 or any other entry to the contrary.

(3.) THE revenue challenged the order of the Commissioner (Appeals) before the Tribunal. After hearing the parties the Tribunal examined in detail Rule 57Q of the Rules and the definition of 'capital goods'. It proceeded to conclude as under: