CCE Vs. TECHNOLOGICALS INSTITUTE

JUDGEMENT

(1.) THE issue involved in this appeal filed by Revenue is whether capital goods credit under Rule 57Q of the Central Excise Rules is available in respect of winding wires of copper used for rewinding the electric motor which in turn was used to run the spinning machines and in respect of spare parts of static converter.

(2.) SHRI Y.R. Kilania, learned D.R., submitted that Assistant Commissioner had disallowed the capital goods credit in Adjudication Order dated 13.7.1997 holding that winding wires were used for repairing electric motors which themselves did not bring about any change in the manufacture of yarn; that similarly static converter was used to convert Alternating Current into Direct Current and as such did not bring about any change in the final product; that the Commissioner (Appeals) allowed the capital goods credit on winding wires and static converter following the decision in CCE, Meerut v. Modi Xerox 1996 (86) ELT 530 (T). He, further, submitted that both the impugned items were not capital goods as per Explanation to Rule 57Q as these items were not used for producing or processing or bringing about any change in any substance for the manufacture of the final products and the amendment made by Notification No. 14/96 -CE, dated 23.7.1997 (sic) is not available to the capital goods received in the factory before 23.7.1996. He finally submitted that the issue regarding eligibility of wires and cables for capital goods credit has been referred to the Hon'ble High Court in the case of Nova Udyog Ltd. 1997 (97) ELT 229 (T).

(3.) SHRI R. Pal Singh, learned Advocate, submitted that the issue involved in the present appeal stands decided by the Larger Bench of the Appellate Tribunal in the case of Jawahar Mills Ltd. v. CCE, Coimbatore .