TaxTMI 
TaxTMI 
2009 (3) TMI 532
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....the Tribunal'). The Tribunal has held that the dealer-appellant would not be entitled to Modvat Credit in respect of spare and parts of two chilling plants, which have been erected by the dealer-appellant. The rationale adopted by the Tribunal is that Modvat Credit as per the requirement of Rule 57Q Explanation (1)(a) of the Central Excise Rules, 1944 (for brevity, 'the Rules'), is admissible on 'capital goods'. However, the Rule has excluded from the benefits of Modvat Credit items under Chapter Heading 84.15. 2. The short question which arises for determination in this appeal is whether spare parts used by the dealer-appellant for erecting two chillers are covered under Chapter Heading 84.15 or any other entry to the contrary. 3. Br....
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....ntial requirement for the manufacture of pharmaceuticals/drugs did not find favour with the Adjudicating Authority for the reason of express exclusion of those items from the definition of 'capital goods'. On appeal, the view taken by the Adjudicating Authority was reversed by the Commissioner (Appeals) who took the view that items which are generally used in the chilling plant had different function. The Commissioner (Appeals) also held that such items were essential for the manufacture of the final product and without the components the plant cannot function and the final product could not be manufactured. 4. The revenue challenged the order of the Commissioner (Appeals) be fore the Tribunal. After hearing the parties the Tribunal exam....
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.... would be necessary to read Rule 57Q of the Rules alongwith the 'Table', which grant Modvat Credit by defining 'capital goods' and specifically exclude those items which would not qualify as such. Rule 57Q alongwith the table (as it stood during the relevant period) reads thus "57Q. (1) The provisions of this section shall apply to finished excisable goods of the description specified in the Annexure below (hereinafter referred to as the "final products") lot the purpose of allowing credit of specified duty paid on the capital goods used by the manufacturer in his factory and for utilizing the credit so allowed towards payment of duly of excise leviable on the final products, or as the case may be, on such capital goods, if such capital ....
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.... kind used for refrigerating and air conditioning appliances and ma- (b) (c) (e) (f) (g) (h) TABLE S. No. Description of capital goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and used in the factory of the manufacturer Description of final products (1) (2) (3) All goods falling under heading Nos. 82.02 to 82.11; All goods specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1985), other than the following namely:- (i) all goods falling under Chapter 24; and (ii) all goods falling under heading Nos. 36.05 or 37.06. 2. All goods falling under chapter 84 (other than internal combustion engines fallin....
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....d hereunder for facility of reference:- "Tariff Item Description of goods Unit Rate of duty (1) (2) (3) (4) 8415 8415 10 8415 10 10 84151090 841520 84152010 841520 90 841581 84158110 84158190 8415 82 841582 10 84158290 841583 8415 83 10 84158390 8415 90 00 Air-conditioning machines, comprising a motor driven fan and elements for chang....
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....p; 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 7. The order of the Commissioner (Appeals) which favour the dealer- appellant has highlighted that chilling plant is a composite unit and cannot function without various other components forming part of the plant. ft also indicate that the motor is used to drive the unit of compressor for the purpose of compression of gas, which after compression moves on t....