CCE Vs. TABLETS INDIA LIMITED

JUDGEMENT

(1.) BRIEF facts of the case are as follows.

(2.) THE respondents were engaged in the manufacture of Pharmaceutical products and were availing the facility of Modvat credit on capital goods under Rule 57Q of the Central Excise Rules during the period of dispute (September, 1995). The jurisdictional Assistant Commissioner disallowed the capital goods credit to the tune of Rs. 3,35,288/ - taken by the Respondents during the said period, on the ground that the said goods did not fall under the category of capital goods under Rule 57Q. In the appeal filed by the aggrieved party against the Assistant Commissioner's order of adjudication, the lower appellate authority passed its order dated 19.10.1997 holding that the goods in question were eligible as capital goods for the credit under Rule 57Q and reversing the order of adjudication. The Department has come in appeal against this order of the Commissioner (Appeals).

(3.) I have carefully examined the impugned order and connected records of the case. I have also heard the Ld. D.R. appearing for the Revenue and the Ld. Counsel for the Respondents. The Ld. D.R. has reiterated the grounds of the appeal. He has admitted the fact that all the goods in question namely vapour absorption heat pump (falling under Chapter sub -heading 8418.00), Motor (falling under chapter sub -heading 8501.00) and Cooling tower (falling under chapter sub -heading 8419.00) were used by the Respondents in their Central air conditioning plant to maintain temperature of the atmosphere required for the manufacturing process.