1997 (1) TMI 383

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....pital goods credit in respect of air conditioners in their cases. Almost all the appellants have also filed stay applications for waiver of pre-deposits of the duty. Since similar issue is involved in all these appeals, I am disposing them of by this combined order-in-appeal. 2. I have given my careful consideration to all the facts and I have also seen the impugned orders. In respect of appeal Nos. 30 and 31/96 (CBE), the stay matter was heard through Shri P.C. Srinivasan, Consultant who reiterated the grounds of appeal. He was requested to produce evidence as regards the essentiality of the air-conditioners for manufacture of the final product evidence as regards the essentiality of the air-conditioners for manufacture of the fina....

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....ir-conditioners are not used in the manufacture of any final product. It is not used in relation to the manufacture of any intermediate product either. As such the ACs refused to consider these items as capital goods for the purpose of Rule 57Q, and accordingly held that the appellants were not entitled to the credit of duty paid on the air-conditioners. 5.(a)  In the first two appeals i.e. 30/96 and 31/96, the appellants are manufacturer of P or P medicaments and have stated that the air-conditioners actually control the process of manufacture by processing the air under circulation in the area of manufacture to provide a sterile atmosphere so as to ensure the stability of the product. I find force here. In fact air conditioning is....