2001 (3) TMI 606

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....Advocate, for the Respondent. [Order]. - The respondents are engaged in the manufacture of Telephone Cables falling under sub-heading 8544.00. They had availed the Modvat credit on the items viz., Speco Lube, Nexus N : 375 VAUPS with built in batteries, Testing Chords, Input Assembly Module, Tachometer, Generator, Connector, Pump and Annealer Cooling as capital goods. The Assistant Commissio....

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....7Q of the Rules, having no direct nexus to manufacturing stream in the factory. It is contended that meaning of the 'capital goods' as per Rule 57Q during the relevant period is restrictive and not exhaustive. The words used in the Explanation are 'in the manufacture of' ....... and 'not in or in relation to the manufacture of' which suggests that capital goods or these accessories should have dir....

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....ee conditions mentioned therein, such "capital goods" will be entitled to Modvat credit. Not only the complete machines, machinery, plant, equipment, apparatus, tools or appliances falling under clause (a) their components, spare parts and accessories are also to be treated as capital goods entitled to Modvat credit. The only condition that is to be satisfied for clause (b) to come into play is th....

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.... under consideration do not have direct role in manufacturing process. From the above analysis in the order of the Larger Bench of the CEGAT, it is observed that the definition does not require the use of the capital goods in the direct manufacturing process of the end products. Therefore, the contention of the Revenue in their appeal is misconceived. However, at the relevant time, the item Speco ....