2008 (6) TMI 212

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....bunal, New Delhi (in short called 'CEGAT') whereby the following substantial question of law has been preferred for adjudication :- "During the relevant period only those items were covered under the definition of Capital Goods which were used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products or which found mention under sub-clause (d) of Clause (1) under explanation to Rule 57Q of the Central Excise Rules, 1944. The question arises whether H.T. Switchgear Panel and 66 KV Breaker, Protective Chain for tyre and Logic Controller were covered under the definition of Capital Goods during the relevant period when the same were not used for producing or processing of....

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....v. C.C.E. - 1999 (108) E.L.T. 47 'CEGAT' has held that electric switches are entitled for the benefit of Modvat credit. In respect of logic controllers, relying upon the decision of the Tribunal in the case of Jindal Polymers v. C.C.E. - 1998 (103) E.L.T. 569 (T) and on Mansurpur Sugar Mills 1996 (87) E.L.T. 91 (T) protection chain for tyre was held to be entitled for the benefit of Modvat credit. 6.For adjudicating the present question of law, it is necessary to refer to the relevant provisions of Rule 57Q of Central Excise Rules, 1944 (for short the Rules) as below :- "57Q. Applicability. - (1) The provisions of this section shall apply to finished excisable goods of the description specified in the annexure below (hereinafter referred ....

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....uipment, apparatus, tools or appliances used for aforesaid purpose; and (c) moulds and dies, generating sets and weighbridges used in the factory of the manufacturer. (2) 'specified duty' means duty of excise or the additional duty under Section 3 of the Customs Tariff act, 1975 (51 of 1975)." 7.In this case, the Commissioner of Central Excise challenged the Modvat credit on switchgear panels, protection chain for tyre and logic controller. The Tribunal in the case of Kanoria Chemicals (supra) held that switches and panel boards are entitled for the benefit of Modvat credit as they are used as component/spare parts of plant, therefore, the respondents are entitled for the benefit of Modvat credit in respect of switch gear panels. In resp....