1997 (9) TMI 318

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n, - (1) "capital goods" means - (a) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products; (b) components, spare parts and accessories of the aforesaid machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose; and (c) moulds and dies, generating sets and weigh-bridges used in the factory of the manufacturer. (d) following goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and used in the factory of the manufacturer, - (i) all goods falling under Heading Nos. 84.02, 84.05, 84.06, 84.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... issue of Notification 14/96 by amendment of the definition of capital goods under explanation to Rule 57Q, all goods falling under tariff Heading 85.02 in terms of explanation 1(b) are to be considered as capital goods for Modvat purposes. Tariff Heading 85.02 covers generating sets. The respondents are absent and have sought for decision on merits and the decision of the North Regional Bench 1996 (88) E.L.T. 785 in the case of J.K. Synthetics v. C.C.E., Jaipur has been brought to our notice, under which the Tribunal has held that the amendment of the explanation to Rule 57Q was clarificatory in nature and the benefit of Modvat credit has been allowed. In terms of this amendment of the definition, Modvat credit has been allowed in respect ....