PHARMASYNTH FORMULATIONS LTD Vs. COMMR. OF C. EX.

JUDGEMENT

(1.) IN this appeal filed by M/s. Pharmasynth Formulations Ltd., the matter relates to the eligibility of the Air -Conditioner installed in the Capsule Manufacturing Section of the Appellants to the benefit of Modvat credit. Relying upon the Tribunal's decision in the case of Commissioner of Central Excise, Coimbatore v. Titan Industries Ltd. -1997 (96) E.L.T. 398 (Tribunal), the Commissioner of Central Excise (Appeals), New Delhi held that the air -conditioners were not eligible for Modvat credit.

(2.) THE matter was posted for hearing on 7 -9 -1998. The appellants have prayed for decision or merits. Shri Y.R. Kilania, JDR was present for the respondents/Revenue. I have carefully considered the matter and have gone through the facts on record.

(3.) THE appellants were engaged in the manufacture of Patent and Proprietary Medicines. They had availed of the Modvat credit of Rs. 9,522/ - on the Air -conditioner installed in the Capsule Section of their manufacturing facilities for manufacturing medicines. The use of the air -conditioner in the premises where hard Gelatin Capsules were produced was as per the "Goods Manufacturing Practice" prescribed under the Drugs and Cosmetics Rules, 1945. Under Rule 78 of the Drugs and Cosmetics Rules, 1945 as amended by the Drugs and Cosmetics (6th Amendment) Rules 1988 it has been provided in Clause (P) under Rule 78 of the said rules that the licensee shall comply with the requirements of Goods. Manufacturing Practice as laid -down in Schedule -M, in Part -II Clause 5 under Schedule -M, it has been recommended for filling of Gelatine Capsules that the room shall be air -conditioned and also dehumidified. Para 5 is extracted below : -