TaxTMI 
TaxTMI 
2003 (6) TMI 370
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....the nature of quality control equipments which are essential for the manufacture of quality products. With this observation, the learned Commissioner held that they are used in or in relation to the manufacture of the final products. 2. Aggrieved by this order, the Revenue has come in appeal on the ground that the part of the decision of Commissioner of Central Excise (Appeals), Chennai allowing the Modvat credit on air-conditioners under Rule 57Q vide para 5(v) of the impugned order is not legal and proper on the following grounds :- (1) When the Modvat credit scheme on "capital goods" was introduced in the year 1994, the principle underlying extension of Modvat credit was that the capital goods should be use....
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....ocally the goods "air-conditioners" from the eligibility of the Modvat credit. 3. In view of above grounds, the revenue prays that the impugned order passed by the Commissioner Central Excise (Appeals), Chennai in respect of the air-conditioner directing the lower authority to extend the credit after verification and allowing the appeal of M/s. Gabriel India Ltd., Hosur be set aside and that portion of the Order-in-Original No. 64/98, dated 4-2-99 passed by the Assistant Commissioner of Central Excise, Hosur II Division holding that credit is not extendable to the above impugned items be restored. 4. Ld. DR Shri P. Devaludu appearing on behalf of Revenue while reiterating the submissions made by the Revenue in the grounds of app....
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.... to issue of Notification No. 14/96-C.E. (N.T.), dated 23-7-96 excluding it from the scope of Rule 57Q. In other words, the Tribunal conventionally held that for the units which are received after issue of Notification No. 14/96-C.E. (N.T.), dated 23-7-96 when the air-conditioning machineries were excluded from the provisions of capital goods under Rule 57Q have to be denied to the respondent-assessee. 5. In view of the above submissions, the learned DR has prayed that the impugned order may be set aside in respect of that portion where Modvat credit has been allowed on air-conditioners as per para 5(v) of the impugned order. 6. I have considered the submissions made by learned DR. None appeared for the respondent-assessee despi....