2006 (2) TMI 38

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.... No. 5012/28-3-03  Inv. No. 165/20-3-03 Rs. 4,20,535/- (CVD)  Rs. 11,174/- 45/3-4-03 105/4-3-03 Imported goods Indigenous 2. The reason given by the Commissioner (A) is that the said item was not used for manufacture of final products under Rule 2(g) and Rule 2(b) of Centvat Credit Rules, 2002. It is the contention of the appellant that these goods are required to be treated as capital goods and they are eligible for the cenvat credit in terms of Tribunal ruling rendered in the case of Sukhmal Steel & Metal Industries Ltd. v. Collector reported in 1999 (113) E.L.T. 181 wherein the following items were considered as capital goods; water cooled capacitors, induction coil/magnetic yoke, DC choke, assembly wiring of testing of ....

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....cluded in the value of motor vehicles. 3. The learned Representative submits that the issue is covered by all these citations. He submits that the present I is — (i) Digital Multimeter & Insulation Resistance Tester (Megger) (ii) Vibration meter/noise meter He submits that these items are essential for transformers and without it the transformers cannot function. He refers to the write-up given by the Senior Manager (QA) of the appellant who has given a detailed opinion that without these items, the transformers cannot function. 4. The learned SDR submits that the citations are clearly distinguishable. He further submits that these items were independently invoiced and they cannot be considered as part of the transformers. Hence, the....

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....ike Megger, Vibration meter/noise meter, tan delta meter, DGA set etc.) Integration of the above 6 systems make one power transformer. The above system are designed and provided in line with the specification of customer. All those items are procured and assembled and tested in the presence of customer, in accordance with National/International Standards. Then the final product is released for dispatch. At site this transformer is reassembled and tested using these Megger and Noise level meter. The item (F) Condition Monitoring System is of two types. (i) On line Condition Monitoring System. (ii) Offline Condition Monitoring System. In the on line system, those accessories are integral mountings on each unit so that the monitoring acti....