2004 (4) TMI 231

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.... hence entitled for Modvat credit as capital goods. The revenue filed an appeal against the said order of the Assistant Commissioner before the Commissioner (Appeals). The said authority rejected the appeal, after considering the detailed manufacturing process and after taking into consideration the CBEC's Circular and also the various decisions of the Tribunal. For better appreciation paras 3, 4, and 5 of the order which are produced below :- "I have carefully considered the facts of the case, the grounds of review, the findings of the adjudicating authority and the law on the subject. On regarding of the definition of Machinery as given in Oxford American Desk Dictionary as machines collectively, components of the machine, mechanism. F....

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....mould, which are in the shape of the article to be manufactured. However, since the materials injected in the mould is in the molten form and the same is very hot before the article is shaped and taken out of the mould, the same is to be first cooled down and then only the article can take shape of the cavity of the mould and can be removed from mould. Moreover, during the process the mould and machine also gets heated, which is required to be cooled down or else the same will not function. These cooling operations which are highly essential are carried out with the help of water chilled in the Cooled Water Chillers. I find that the department has filed review appeal for denial of Modvat credit on Water Cooled Water Chillers, as capital ....

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....ule 57Q of Central Excise Rules, 1944. The same view is also taken by the Hon'ble Tribunal in the case of CCE, Jaipur v. Sunil Synchem Ltd. - 1999 (107) E.L.T. 176 (Tr.) and the ratio of these cases more than apply in the instant case as the machines in question Cool Water Chiller twin (water chiller machine) are directly controlling the moulds made in the Plastic Injection Moulding machine by its nature of cooling the said moulds without which the "moulds" could not be formed consistently/accurately/properly in a uniform size and shape. I find that the scope of eligibility to Modvat credit on capital goods under the provisions of Rule 57Q have been considered by the Court and the Tribunal in series of judgments. A more broader inclusion....