COMMISSIONER OF CENTRAL EXCISE Vs. PITTIE CEMENT INDUSTRIES

JUDGEMENT

(1.) THE issue involved in this appeal preferred by Revenue is whether switch gear/control gear used as spare parts in D.G. sets are eligible capital goods under Rule 57Q for the purpose of availing capital goods credit.

(2.) WHEN the matter was called, no one was present on behalf of the Respondents, M/s. Pittie Cement and Industries Ltd. The registry informed that the notice of hearing sent to them has been received back from postal authority with the remark 'Factory locked'. We, therefore, heard Shri Y.R. Kilaniya, learned DR and perused the records.

(3.) SHRI Y.R. Kilaniya, learned JDR, submitted that both the Assistant Commissioner and Commissioner (Appeals) allowed the capital goods credit on these two goods as these were used as parts of the D.G. set and would be covered by Explanation 1(d)(ix) to Rule 57Q. He mentioned that switch gear/control gear merely regulate the electric current and are not used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product; that these cannot be called as the component/spare parts of the D.G. set but are installed separately.