Capital goods treatment of induction coils upheld for exemption as furnace components under excise law.

Induction coils used as components of an induction furnace were treated as capital goods for purposes of exemption under Notification No. 67/95-C.E. The recorded finding that the coils formed part of the furnace was not rebutted by any contrary evidence from the Department. On that basis, the coils satisfied the definition of capital goods under Rule 57Q of the Central Excise Rules, 1944, and the benefit of exemption was upheld.

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Issues: Whether induction coils, being components of an induction furnace, qualify as capital goods for availing exemption under Notification No. 67/95-C.E. dated 16-3-1995.

Analysis: The finding recorded by the Commissioner that the induction coils were components of the induction furnace was not displaced by any contrary evidence from the Department. As components of the furnace, the coils satisfied the definition of capital goods under Rule 57Q of the Central Excise Rules, 1944. No infirmity was found in the order granting the benefit.

Conclusion: The induction coils were held to be capital goods and eligible for the exemption claimed.

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