2006 (7) TMI 455

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....ir factory during the period July, 1996 to March, 2001. The lower authorities issued a show cause notice alleging that the credit is inadmissible as per rule 57Q as was in existence during the relevant period. Respondent contested the show cause notice on the ground that the said chilling plant is a necessity for the manufacturing of their final products i.e. bulk drugs and without the chilling plant there would be no final products. Adjudicating authority confirmed the demand on the ground that the parts of chilling plant were classified under chapter heading no. 84.15 and hence excluded by the rule itself. On an appeal the Commissioner (Appeals) allowed the appeal. 3. Learned DR submits that the credit availed by the respondent is....

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....t the Modvat credit on capital goods is availed on the parts of chilling plant that were erected in the factory of the respondent. It is also undisputed that the Modvat credit was availed during the period July, 1996 March, 2001 and that the parts were covered under chapter heading No. 84.15. During the relevant period provisions of Rule 57Q of the Central Excise Rules, 1944 governed the eligibility of the Modvat credit on capital goods. It is necessary to refer to the said rule that I may read: "57Q. (1) The provisions of this section shall apply to finished excisable goods of the description specified in the Annexure below (hereinafter referred to as the "final products") for the purpose of allowing credit of specified duty paid on the....

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....under heading No. 84.14 and of a kind used in refrigerating and airconditioning appliances and machinery, heading or sub-heading Nos. 84.15, 84.18, 8422.10, 84.24, 84.29 to 84.37, 84.40, 84.50, 84.52, 84.69 to 84.74, 84.76, 84.78, expansion valves and solenoid valves falling under sub-heading No. 8481.10 of a kind used for refrigerating and airconditioning appliances and machinery); (b)     ............ (c)     ........... (d)     ........... (e)     ............ (f)      ............. (g)     ............ (h)     ............." A plain reading of the said rule will indicate....