Capital goods exemption denied for steel structures classifiable under Chapter Heading 7308, leaving the Revenue's case to succeed.

Fabricated steel supporting structures used for sugar mill machinery were held outside the scope of the capital goods definition because they were classifiable under Chapter Heading 7308. As the exemption under Notification No. 67/95-C.E. was confined to goods manufactured in the factory that qualified as capital goods, the structures did not satisfy the statutory condition. The commentary also notes that the earlier decision in the respondent's own case supported this classification-based exclusion, so the exemption was unavailable and the Revenue's appeal succeeded.

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Issues: Whether the steel supporting structures manufactured in the factory were eligible for exemption under Notification No. 67/95-C.E. when they were classifiable under Chapter Heading 7308 and did not fall within the definition of capital goods.

Analysis: The dispute concerned fabricated steel structures used as supporting structures for sugar mill machinery. The applicable exemption was confined to capital goods manufactured in the factory. Steel structures falling under Chapter Heading 7308 were outside the definition of capital goods under Rule 57AA of the Central Excise Rules, 1944. In view of the tariff classification and the earlier decision in the respondent's own case, the exemption was not available.

Conclusion: The steel structures were not eligible for exemption under Notification No. 67/95-C.E., and the appeal succeeded in favour of the Revenue.

Ratio Decidendi: An exemption restricted to capital goods does not extend to steel structures classifiable under Chapter Heading 7308 of the Central Excise Tariff Act, 1985, as such goods fall outside the statutory definition of capital goods.

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