2014 (1) TMI 1517

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....n under Section 35G(3) vide reference order dated 23.02.2001. It would be germane to quote the question which has been referred to us by the CEGAT, which reads thus;      "Whether the items Panel Board and PVC Cables which do not participate in the manufacturing process can be said to fall within the definition of Capital goods under Rule 57 Q of the Central Excise Rules, 1944, at the relevant time and accordingly availed credit as provided under the said Rule." 3. The contention of learned counsel for Revenue is that assessee is carrying a Sugar Industry and manufactures sugar and to provide electric connection in the entire establishment, PVC cables and panel boards are affixed. According to assessee for these ar....

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....n any place in India.      shall be restricted to the extent of duty which is equal to the additional duty leviable on like goods under Section 3 of the Customs Tariff Act, 1975 (51 of 1975) equivalent to the duty of excise paid on such capital goods.      Explanation - For the purpose of this section;-      (1) 'capital goods' means-      (a) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of the final products;      (b) components, spare parts and accessories of the aforesaid machines, mach....

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....tches, starters, air compressors and electric wires and cables if used for the purpose specified in Expln. (1)(a) to R.57-Q of Central Excise Rules, they will come within the ambit and scope of "capital goods" and upon this MODVAT credit is applicable to the assessee. In this regard we may place reliance upon para 4 of the aforesaid decision, which reads thus:      "4. The aforesaid definition of "capital goods" is very wide. Capital goods can be machines, machinery, plant, equipment, apparatus, tools or appliances. Any of these goods if used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product would be "capital goods", and, therefore, qualify ....