2009 (4) TMI 526

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....nal products namely Sliver/combed/carded cotton falling under Ch. 52.02 are eligible capital goods, when this heading remained specifically excluded from the purview of capital goods under erstwhile Rule 57Q as it stood during the material time, by overriding the legal provisions." 2. Mr. P. Mahadevan, learned counsel for the appellant submitted that the authorities had failed to see that Cotton Carded or Combed falling under Chapter 52.02 is manufactured by carding and combing machinery and as per Rule 57Q as it existed at that time, carding and combing machinery could not be considered as capital goods for the period from 1-3-1994 to 20-10-1994 because the goods falling under the Heading 52.02 remained excluded from the list of el....

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....urt declined to grant leave [1996 (81) E.L.T. A47 (S.C.)] against the judgment of the Delhi Court in Modi Carpets Limited case [1997 (91) E.L.T. 285]. They also relied on Bhor Industries Ltd. v. Collector of Central Excise [1989 (40) E.L.T. 280], where it was held as follows :- "Therefore, it is necessary, in a case like this, to find out whether there are goods, that is to say, articles as known in the market as separate distinct identifiable commodities and whether the tariff duty levied would be as specified in the Schedule. Simply because a certain article falls within the Schedule it would not be dutiable under excise law if the said article is not "goods" known to the market. Marketability, therefore, is an essential ingredient in ....