TaxTMI 
TaxTMI 
1997 (6) TMI 183
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....dents has pleaded that he is not contesting the claims of the revenue in the facts of this case. As it is on a perusal of the lower authority's order it is seen that the weighing of the components is done for the purpose of convenience of giving a certain number of pieces for assembly. So far as the weighing machine is concerned, the learned Advocate for the respondent pleads that he is withdrawing his claim in respect of this particular item. In view of what has been pleaded, the appeal of the Department insofar as this is concerned, is allowed. 3. In regard to the grant of Modvat credit in respect of the air conditioner, the learned JDR for the Department, Shri Murugandy has pleaded that it is to provide a congenial atmosphere for....
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....re of finished goods. If this test be applied, it is clear that humidifiers are machinery used in the manufacture of cloth. 5. The learned JDR for the department has pleaded that Rule 57Q was subsequently amended on 16-3-1995 whereby the air conditioner has been specifically excluded. He has pleaded this exclusion should be treated as clarificatory in nature. I observe that this Bench of the Tribunal in the context of the humidifier has held as under :    7. It is observed that as urged by the learned DR for the Department, the definition of capital goods as set out under the rules is restrictive and the words used are that capital goods should be such as are used for production, processing or for bringing out....
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....ication only creates atmosphere and does not answer to the use as above. There is no dispute that humidification is required to be done for having certain level of humidity to get the yarn of a particular quality and that by itself does not mean that the humidification plant can be considered as equipment used for production, process or for bringing about any change in the substance in the manufacture of the final products. In the above view of the matter, the appeal of the Revenue is allowed. 6. We observe that it cannot be denied that like in the case of humidifier, air conditioners which are used may be required to provide a certain desired environment for the manufacture of the goods. However, before the Modvat credit can be all....