2007 (5) TMI 164

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....ation in this case is whether Modvat credit on split air-conditioner procured by the respondents in October 1995 and used for maintaining control panel, etc. in their Mill House in proper atmosphere is admissible to them under Rule 57Q of the erstwhile Central Excise Rules, 1944. Learned SDR representing the appellant relies on the following decisions :- (i) CCE, Meerut v. Majestic Auto Ltd. - ....

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.... E.L.T. 398 (Tribunal) [whwrein air-conditioners which were used to provide a desired environment for manufacture goods were held to be not eligible for Modvat credit under Rule 57Q]. Learned SDR, reiterating one of the grounds raised in the appeal, also submits that the Supreme Court's decision in the case of Jawahar Mills Ltd. [2001 (132) E.L.T. 3 (S.C.)] is distinguishable on facts and hence....

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....stries Ltd. v. CCE, New Delhi - 2002 (150) E.L.T. 570 (Tri.- Del.), wherein the decision in Shriram Needle Bearing Industries (supra) was followed and capital goods credit allowed in respect of air-conditioner used for controlling and conditioning air temperature for the purpose of manufacturing final product. 2. After considering the submissions and the case law cited before me, I find that th....

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....e judgment reported in 2001 (132) E.L.T. 3 (S.C.). According to the appellant, the case of Jawahar Mills Ltd. (supra) decided by the apex court [2001 (132) E.L.T. 3] is distinguishable and inapplicable. This case of the Revenue cannot be accepted inasmuch as a Larger Bench of the Tribunal in the case of Shriram Needle Bearing Industries (supra) has held Jawahar Mills (supra) to be applicable to ai....