Peripheral machinery integral to manufacture qualifies for Rule 57Q credit when essential to completing production.

A cooling tower used to cool moulds in an injection moulding machine was treated as peripheral equipment integrally connected with manufacture and therefore as eligible for the benefit under Rule 57Q of the Central Excise Rules, 1944. The Tribunal applied the approach that machinery which processes inputs or machinery and makes them ready for final production can qualify as equipment essential to completing the manufacturing process. On that basis, the assessee was allowed the benefit.

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Issues: Whether a cooling tower used for cooling moulds employed in an injection moulding machine qualified for benefit under Rule 57Q of the Central Excise Rules, 1944.

Analysis: The Tribunal noted that peripheral machinery which processes machinery or inputs and makes them ready for manufacture of final products has been treated as admissible in prior decisions. It applied the same approach to the cooling tower, treating it as equipment essential to the completion of the manufacturing process and integrally connected with the manufacture of the final products.

Conclusion: The cooling tower was held eligible for the benefit under Rule 57Q, and the assessee succeeded.

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