1999 (8) TMI 283

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....ate, for the Respondents. [Order]. -  Commissioner (Appeals) had allowed Modvat credit as capital goods on the following items :- (i) Muffle Furnace (ii) Auto Load Sharing Panel (iii) BES Ambonite Insert (iv) Complete Spares and Spare Parts for Testing Equipments and (v) Banana Plug and 4 Pole Male Connector. Being aggrieved by this order, Revenue has filed the captioned appeal. 2....

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.... submits that these are tools which are used in the lathe machine for cutting hard material and therefore, they do not qualify for consideration as capital goods for the purpose of Modvat credit. 5. 'Complete Spares and Spare Parts for Testing Equipments' on which Modvat credit has been allowed by the ld. Commissioner (Appeals) fall under Chapter sub-heading 8517.00, which is mainly an Ele....

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....onditions are that the `capital goods' must be used in production or in processing or in producing a change in the final product. He submits that processing is a very wide term to cover not only the main processing but also the ancillary processing and they are placed in different part of the plant. He submits that all the processing is essential for final production of the finished goods. He subm....