2008 (10) TMI 439

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....M.P.S. Joshi, Advocate, for the Respondent. [Order]. -  Heard both the sides and perused the records. 2. The issue involved in the instant appeal filed by the Revenue is regarding the eligibility to the Modvat credit on centrally air conditioning plant (installed in the weaving department of the factory of the assessee) as capital goods under Rule 57Q of the Central Excise Rules....

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....r the manufacture of final products. However, I find that air conditioning plant in question is used for temperature control and cannot be considered as used for processing/producing of any goods or for bringing about any change in any substance for the manufacture of the final products. Capital goods must directly participate in the manufacturing stream and must have nexus for bringing about any ....

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....he list of capital goods, which are eligible to Modvat credit under Rule 57Q. 4.2 The Tribunal in the case of Commissioner of Central Excise, Madras v. Fourts (India) Laboratories Pvt. Ltd. reported in 1997 (92) E.L.T. 231 (T) has held that the air-conditioner used to control the temperature and humidity during manufacture of drugs and formulation is not eligible to Modvat credit under Rul....