ORDER
S.S. Kang, Vice-President
1. Heard both sides. Revenue filed this appeal against the Order-in-Appeal passed by the Commissioner (Appeals) whereby the benefit of Notification No. 67/95-C.E. was allowed in respect of the capital goods manufactured in the factory and the same are used in the manufacture of final product.
2. Revenue filed this appeal only on the ground that all the items which are claimed as components and parts of machine falling under Chapters 84 and 85 of Central Excise Tariff. Components and parts which are claimed to be part of machine were found to be classifiable under Chapter 73 of the Tariff and goods falling under Chapter 73 are not covered in the scope of definition of capital goods.
3. The contention of the respondents is that as per the provision of notification, capital goods as delined under Rule 57Q of Central Excise Rules, manufactured in the factory and used in the factory of production are entitled for the benefit of the notification. The contention is that as per the definition of capital goods under Rule 57Q of Central Excise Rules, the specified goods, i.e., components and parts of the specified goods are covered under the definition. The respondents also relied on the Board’s Circular dated 2-12-96 to submit that it has been clarified by the Board that parts of specified goods irrespective of classification are entitled to cover under the definition of capital goods. It is also pointed out that as per notification, the benefit as available is specified goods in column (2) of the table, manufactured in the factory and used in the factory of production in or in relation to the manufacture of the specified final product in column (3) of the table. The contention is that goods falling under Chapter 73 are covered under the description of goods in column (2) of the table of the Notification. The goods in question are entitled for the benefit of notification.
4. We find that in this case the respondent’s are manufacturing the capital goods and parts thereof in their factory and the same are used in the factory of production. The only objection of the revenue is that parts of the goods are under heading 73 of the Tariff and these are not specified as capital goods. We find that as per the definition of Rule 57Q, the specified goods as well as parts of specified goods are covered under the definition of capital goods. Further, Board clarified by issuing a circular dated 2-12-96 to the effect that for the purpose of capital goods, parts, components and accessory which are used with capital goods are entitled for the benefit as capital goods irrespective of their classification. Further, we find that notification also provides that goods specified in column (2) which are manufactured and used in the factory of production are also entitled for the benefit of notification. The goods in question are covered under the goods specified in column (2) of the notification. We find no infirmity in the impugned order. The appeal is rejected.
(Dictated and pronounced in open Court)