Common parlance meaning of capital goods can extend exemption to cold-room materials for honey processing units.

Pre-fabricated structures, PUFF panels and RPF panels used for a cold room in a honey-processing and storage facility of a 100% export-oriented unit were treated as capital goods for exemption purposes. The Cenvat Credit Rules definition could not be imported into an exemption notification that contained no definition, so the expression had to be read in its ordinary common parlance sense. Because the goods were required for the cold room necessary for storage and processing of honey, and earlier Tribunal views supported similar insulation materials, the exemption benefit was available and could not be denied.

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Issues: Whether pre-fabricated structures, PUFF panels and RPF panels required for a cold room used in processing and storage of honey by a 100% export oriented unit qualify as capital goods eligible for duty-free clearance under the exemption notification.

Analysis: The definition of capital goods in the Cenvat Credit Rules is confined to the scheme of Cenvat credit and cannot be imported into an exemption notification meant for 100% EOUs when the notification itself contains no definition. In such a situation, the expression must be understood in its ordinary or common parlance sense. The goods were required for the cold room, which was necessary for storage and processing of honey, and the Tribunal's earlier view treating similar insulation materials as eligible support this approach.

Conclusion: The goods in question were to be treated as capital goods for the purpose of the exemption notification, and the benefit could not be denied to the assessee.

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