2000 (1) TMI 425

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....apital goods within the meaning of the Explanation below Rule 57Q(1)". 2.  The Departmental Representative explains that since it is evidently the intention of the rule makers that not all goods which may be required in the manufacture of goods, or any process ancilliary or subsidiary thereto, are to be considered to be capital goods. It is only those goods of the categories referred to in the Explanation used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products that are to be considered as capital goods. The goods under consideration in the Tribunal's order are in the nature of an equipment or machinery for distribution of electricity or in the case of moto....

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....levant. There is no ambiguity in Rule 57Q(1) which can be cleared up by means of the Explanation below Rule 57Q. The sub-rule extends the provision to AA of Chapter V apply to for the purpose of availing duty credit on capital goods used by the manufacturer in its factory and for utilising the credit towards duty on final product. It is only the Explanation that defines the meaning and scope of the term "capital goods". If there is any ambiguity, it is in the Explanation itself and not in the rule. 5. It could be argued that the Explanation of "capital goods" contained in sub-clause (a) of clause (ii) of the Explanation is limited only to those goods which are directly used for producing goods or processing goods for the purpose of ....