ORDER
V.K. Agrawal, Member (T)
1. This is a reference application filed by the Commissioner of Central Excise, Meerut for referring the following question of law to Hon’ble High Court arising out of Tribunal’s Final Order No. A/583/98-NB, dated 3-6-1998:
“Whether Modvat credit under Rule 57Q can be allowed on PCB Cards with BOD (parts of control panel) within the definition of capital goods as provided under Rule 57Q of Central Excise Rules, 1944, when control panel are themselves not capital goods?”
2. Shri A.K. Jain, learned DR, submitted that the Tribunal vide Final Order No. A/583/98-NB, dated 3-6-1998 has held that PCB cards are capital goods as the same are used in control panel which controls supply of electricity to the furnace in which metal is melted for manufacture of finished goods; that Panel Board itself has been considered by the Revenue to be not capital goods in view of the definition of capital goods as given in Explanation to Rule 57Q(1) of the Central Excise Rules; that in case of CCE, Meerut v. Nav Bharat Paper Mills reference has been made to the Hon’ble High Court of Allahabad for decision on the eligibility of capital goods credit in respect of electric control panel board vide Tribunal’s Order No. R/32/97/SB(SM). He finally submitted that as the question regarding eligibility of control panel itself has been referred to the High Court the question of eligibility of parts of such control panel for capital goods credit need be referred to the Hon’ble High Court.
3. Shri Alok Arora, learned Advocate, opposes the application by submitting that electric control panel is used for the processing or manufacturing of finished goods and as such is eligible for capital goods and accordingly PCB which is part of such panel will be eligible capital goods.
4. I have considered the submissions of both the sides. As per Explanation to Rule 57Q(1) capital goods means machine, machinery, plant, equipment etc. used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products and components, spare parts and accessories for such machine, machinery etc. I agree with the learned DR that a question of law is involved as to whether electric control panel board can be said to be used for producing or processing of any goods as it is used only for controlling the supply of electricity to the furnace. As the eligibility of electric control panel for capital goods credit has been referred to the Hon’ble High Court, the issue regarding eligibility of PCB which is a part of the electric control panel is required to be referred to the Hon’ble High Court. I, therefore, allow reference application filed by the Revenue and refer the following point of law to the Hon’ble High Court for consideration :-
“Whether Modvat credit under Rule 57Q can be allowed on PCB Cards with BOD (parts of control panel) within the definition of capital goods as provided under Rule 57Q of Central Excise Rules, 1944, when control panel are themselves not capital goods ?”