CCE, JAIPUR Vs. BIRLA JUTE & INDUSTRIES LTD.

JUDGEMENT

(1.) IN the impugned order Ld. Commissioner (Appeals) had given the benefit of Modvat credit on Pollution Control Equipment by relying on the judgment of the Hon'ble Supreme Court in the case of IFFCO vs CCE, Ahmedabad and five other cases set out in the impugned order.

(2.) BEING aggrieved by this order, Revenue has filed this appeal on the ground that as per defination of capital goods under Rule 57Q(1) of the Central Excise Rules, 44, the credit was admissible on the capital goods which were used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product or on the capital goods mentioned in the explanation 1(d) of Rule 57Q(1) of the Central Excise Rules, 44 during the relevant time.

(3.) ARGUING the case for Revenue Shri S.C.Pushkarna, Ld. DR submits that Pollution Control Equipment and Cooling Equipment were neither used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product nor were covered under the explanation 1(d) of Rule 57Q(1) of the Central Excise Rules. ld. DR submits that capital goods scheme under went a change and the defination of capital goods was substantially modified and changed by issue of Notification No.14/96 -CE/NT dt.23.7.96. He submits that in the new scheme goods specified under the Notification were entitled to Modvat on capital goods irrespective of the fact whether or not these were used in processing or producing of any goods or for bringing about any change. Ld. DR, therefore, submits that the impugned order does not take the correct view of the position as was available during the material time and prays that the impugned order may be set aside in so far as treatment of Pollution Control Equipment as capital goods is concerned and that the appeal may be allowed.