CONTROLS AND SWITCHGEAR Vs. COMMR. OF C. EX.

JUDGEMENT

(1.) HEARD both sides.

(2.) THE issue involved in this appeal is whether the appellants are eligible for Modvat credit on testing panel falling under Heading No. 85.37 during the period from 1/96 to 3/96. The lower authorities have denied the credit on the ground that Heading No. 85.37 is not mentioned in the list of the capital goods eligible tor Modvat credit It was argued for the appellants that this issue had earlier come up before the Tribunal and the Tribunal under Final Order No. A/753/98 -NB, dated 3 -7 -98 had remanded back the case to the original authority to decide the issue afresh on the ground that testing machines where specifications and tolerances of component parts were critical factors in the marketability of the final goods, such testing machines have been put on part with machine, which process the components and which go in the production of final products. The eligibility of such machines cannot be brushed aside by making a sweeping general statement. It was informed by the Id. Advocate that this issue has not yet been decided by the original authority.

(3.) I find that the testing panel, which is in dispute, if it is a testing machine and used for measuring the specification and tolerance of the raw material as well as finished goods, which are going into the manufacture of finished products and the finished products are marketed only after testing and these testing equipments renders such products marketable, in such a situation the testing panel will be covered by the description under para (a) of Explanation 1 to Rule 57Q of the Central Excise Rules 1944 as was applicable at the relevant time. This fact requires verification. Since earlier also on this very issue the matter was remanded back and till date, no order has been passed, I find it to be a fit case for remand. This matter is remanded back for verification of the facts. Accordingly, the order of the Commissioner (Appeals) is set aside and the appeal is allowed by way of remand to the original authority to pass afresh order after verification of the facts.