TaxTMI 
TaxTMI 
2005 (11) TMI 79
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.... use and has actually been used in laying false ceiling and humidification plant. 2.According to the assessee, it has used fiber glass and aluminum sheets for providing false ceiling in humidification plant to obtain better efficiency of the plant. He, therefore, procured the aforesaid goods without payment of Duty relying on the notification No. 1/95 C.E., dated 4-1-1995 by issuing CT-3 certificate. 3.The Assistant Commissioner of Central Excise issued show cause notices dtd. 5-9-2001 calling upon the assessee to show cause against the proposed levy of Excise Duty on the aforesaid goods, which according to the assessing officer was leviable and did not fall within the provisions of Exemption Notification No. 1/95 issued under Section 5A ....
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....on notification on the goods In question. Hence, this appeal. 7 In this appeal following substantial questions of law were framed : 1. "Whether in the facts and circumstances, in view of the finding recorded by the Tribunal that the false ceiling is provided in location where humidification plant is operational so as to ensure that the efficiency of the plant is achieved and that it is a work of redesigning besides where the plant can work with efficiency, the end conclusion of the Tribunal that fiber glass and aluminum sheets used in establishing the humidification plant were not capital goods in respect of which the appellant could avail the benefit of purchasing such material without payment of duty? 2. Whether in the facts and circum....
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....).:.................... (ii)..................... (iii)............. (b) the user industry brings the excisable goods directly from the factory of manufacture or from the warehouse and uses them for purposes as specified in clauses (a) to (c) above solely for export; (c).................. (d) the user industry executes a bond with the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise (hereinafter referred to as Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise in the prescribed form and for such sum as may be specified by that Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise for the purpose of accountal of the receipt, storage and utilizati....
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....f product with some sort of permanency or continued user of said goods. Therefore, whether the goods which have been brought in by 100% export oriented undertaking are capital goods or not would not depend on whether such goods have been specified separately in Annexure -I or, not, but would depend upon what use they have been put in. The notification also lays down conditions of do's and don't and also requires assessee to execute a bond in terms of Clause (d). 12.The condition appended to the notification requires that the user industry executes a bond with the concerned authority in the prescribed proforma and for such sum as may be specified by that authority for the proper accounting of the receipt, storage and utilization of such goo....
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....apital goods have become part of installation, they have ceased to be capital goods and cannot be considered as capital goods. 13.The condition for availing the exemption for purchasing the capital goods is not to be used in manufacture of goods, but is of wider impact by using the expression to be used in connection with manufacture of end-product by 100% export oriented undertaking for the purpose of export outside India. It is of much wider canvass. Therefore, if there is connectivity between bringing in of capital goods with the activity of manufacture of end product or its packaging in the sense that it helps in smooth or efficient running of activity of manufacture and packaging of end product, the condition to avail the exemption mu....