TaxTMI 
TaxTMI 
2004 (3) TMI 190
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...."excisable capital goods, components, raw materials, consumables, spares and packaging materials (hereinafter referred to as the goods) when brought in connection with the manufacture and packaging of articles into an undertaking approved by the Board of Approval for hundred per cent Export Oriented Undertakings". Notification also prescribed procedure for obtaining the approval of Excise authorities for duty free procurement of the goods. The appellant has obtained such approvals also for the items. However, subsequently, dispute arose about the eligibility of some of the items for the exemption. Under the impugned order, Commissioner (Appeals), Central Excise, Hyderabad held that following goods were not eligible for exemption : "(i....
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....r conditioners in the earlier stages for the administrative building. Utilisation of the air conditioners in the Administrative building is for the comfort of Administration personnel of the unit and is not connected with the manufacture of the goods. Flood lights/street lights are used for lighting purpose in the bonded area. Similarly, wireless equipment is used for communication purposes between the various personnel of the unit as a matter of administrative convenience. Hence, flood lights/street lights/wireless equipment cannot be considered as brought in connection with the manufacture of the goods. Hence, the benefit of exemption under Notification No. 123/81-C.E., dated 2-6-1981 has been rightly denied by the Assistant Commissioner ....
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....oad and comprehensive as to take in all manner of goods finding place in such activities. Appellants have pointed out that all the items in question are essentially required for carrying out aquaculture business and the condition for exemption is that the goods are "required" by such undertaking for manufacture and packaging of articles and are brought directly to the factory of manufacture and are used in the manufacture of such articles [condition (b) of the Notification]. Learned Counsel emphasised that the goods were procured only after the requirement was approved by the Central Excise authorities. Learned Counsel took us to each of the items and explained that it is required for the business of growing, processing and exporting of shr....
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....llants have submitted that the role of lighting in aquaculture is different from the normal role of lighting in townships or business premises. With regard to wireless equipment, the appellant's explanation is that in a spread out aqua farm this is the only feasible and efficient mode of communication among the work force and managers to ensure that the farm is maintained properly and shrimps are taken care of. Appellant's counsel has emphasised that each line of business is required to be understood keeping in mind its peculiar needs and the Notification construed accordingly. The submission is that since Notification No. 123/81 is widely comprehensive, all the items should be treated as eligible for the exemption. 3.Learned Counsel has....
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....delivering water from reservoir will not be eligible for capital goods credit under Rule 173Q. 5.Notification No. 123/81 is vast in its coverage inasmuch as it grants exemption from excise duty to all manner of items [capital goods, components, consumer items, spares, packing material] required by an EOU for its manufacturing activity. Aquaculture is an extremely sensitive business inasmuch as it involves taking care of a delicate life mechanism. Purity of water, its temperature are all very important for the survival and healthy growth of shrimps. So is the need for inputs like vitamins premix, feed. Pump and connected items are used for bringing sea water, which is inescapably required for a shrimp farm. The air-conditioning units are ....