COMMISSIONER OF CENTRAL EXCISE Vs. INDIA GLYCOLS LTD.

JUDGEMENT

(1.) HEARD both sides.

(2.) REVENUE filed this appeal against the order -in -appeal passed by the Commissioner (Appeals) whereby the benefit of MODVAT credit as capital goods was allowed on the following items:

(3.) THE contention of the Revenue is that period in dispute is from September 94 to February, 95 and during this period the definition of capital goods as per the provisions of Rule 57Q(1) of the Central Excise Rules covers machines, machinery, plant, equipment, apparatus, appliances or tools etc. used or producing or processing of any goods or for bringing about any change or substance for the manufacture of the final products. The components spare parts; accessories of the machines/machinery etc. used in the manufacture of final product were also covered under the definition. The contention of the Revenue is that research and development equipment cannot be said considered to be covered under the definition of capital goods as this equipment is not used for manufacture or processing of the goods in relation to the final product. The contention is also that safety tools are only Hammer, Pickaxe and Chisel, which are used for repair of the building. The Gas detection system is also not used for manufacture of the final product. The same is the contention in respect of the Tower packing.