TaxTMI 
TaxTMI 
2001 (11) TMI 92
X X X X Extracts X X X X
X X X X Extracts X X X X
.... no dispute that the articles in question are voltage regulators. The assessee has claimed Modvat credit of Rs. 30,320/- in respect of excise duty paid on voltage regulators used by him in his factory premises as an equipment, which regulate the voltage of electricity flow to the machines used in the manufacture of textiles by the assessee in order to protect the machine from any damage which may occur due to fluctuation in the voltage. The Assessing Officer found that the equipment has nothing to do with the manufacture of final product as it is neither a machine used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product. 4.The Commissioner of Customs (Appeals) accepted the contention of the assessee by upholding the ground raised by the assessee that voltage stabilizer is essential for stabilizing the flow of electricity for the proper functioning and maintenance of the machines to achieve a regular and proper production of the final product, as the power fluctuations is bound to cause damage to the machines. The voltage regulator is one of the essential equipment with the machine to run the machine prop....
X X X X Extracts X X X X
X X X X Extracts X X X X
....; in a free trade zone and used for the manufacture of final products in any other place in India; or (b) by a hundred per cent export-oriented undertaking or by a unit in an Electronic Hardware Technology Park and used for the manufacture of final products in 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 purposes of this section, - (1) "capital goods" (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 final products; (b) components, spare parts and accessories of the aforesaid machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose; and (c)  ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... further apparent from the fact that the scope of Rule 57Q has been so stated in the case of Commissioner of C. Ex., Coimbatore v. Jawahar Mills Ltd. reported in 2001 (132) E.L.T. 3 (S.C.). After referring to Rule 57Q, as has been noticed above by us, the Court said that, "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 for availing Modvat credit. Per clause (b), the components, spare parts and accessories of the goods mentioned in clause (a) used for the purposes enumerated therein would also be 'Capital goods' and qualify for Modvat credit entitlement. Clause (c) makes moulds and dies, generating sets and weigh-bridges used in the factory of the manufacturer as capital goods and thus qualify for availing Modvat credit. The goods enumerated in clause (c) need not be used for producing the final product or used in the process of any goods for the manufacture of final product or....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e voltage stabilizer is used for the proper functioning and maintenance of the machines to achieve a regular and proper production of the final product, as the power fluctuations is bound to cause damage to the machines is not in challenge. This immediately draws to our mind clause (b) of the definitions, defining capital goods. It not only includes component part of the machines described in clause (a) nor is confined to spare parts for the machines used for the purpose described in clause (a) but also includes 'accessories' to the said machine. The word 'accessories' has not been defined to give any specific meaning for the purposes of the Act nor it has a technical meaning. In these circumstances, if the dictionary meaning or the meaning assigned to the word 'accessory' in the absence of the definition in relation to the machines is concerned, it become more than obvious without any doubt about the same that the 'accessories' of a machine denotes something extra which is added to help in a secondary way and which contributes in the functioning of a machine in a subordinate degree though it is not essential or necessary part of it. 19.Black's Law Dictionary in its 5th edition ....