2002 (4) TMI 721

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....or some time, with reference to the stay application filed by the appellants, I felt that the matter itself can be disposed of on the limited issue. Accordingly, appeal was taken up for regular hearing with the consent of both sides. The issue relates to Modvat credit. Whether Modvat credit is permissible in respect of air-cooling units and the compressors as capital goods in terms of Rule 57Q is an issue to be considered herein. In this appeal, the Commissioner (Appeals) while dismissing the appeal has come to a finding as appeared in Para 6 of the impugned order which reads as under : "6. I have examined the position. As per the explanation to Rule 57Q(1) introduced vide Notification No. 14/96-C.E. (N.T.), dt. 23-7-96, goods falli....

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....rishna Murthy, Advocate arguing for the appellant submitted that air-cooling units were eligible capital goods on the date of receipt of the goods. The date of receipt of goods is relevant for the purpose of availing credit and not the date of taking credit. The Commissioner (Appeals) erred in taking into consideration the provisions that stood as on 3-8-96 which is the date of availment of Modvat credit. Since the impugned air-cooling units were received into the factory on 27-3-96, the provisions of Rule 57Q as it stood on that date are applicable. 5. Heard both sides. 6. With reference to the eligibility of Modvat credit on air-cooling units, I am in agreement with the arguments advanced by the counsel that the item is el....

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.... this group, compressors used in industries are of one kind and those used in refrigerating and air-conditioning appliances are another kind. What are excluded from the definition of capital goods under Rule 57Q. D4 are compressors of a kind used for refrigerating and air-conditioning appliances. He said evidently, the compressors used by the appellant in their ice-cream factory are of industrial type but not those used in domestic purposes. 9. Shri Thomas referring to the Clause (IV) in the aforesaid notification submits that compressors other than of a kind used in refrigerating and air-conditioning appliances are excluded. It means if the Compressors used for refrigerating and air-conditioning appliances are not excluded. 10.&....