JUDGMENT
P. Karthikeyan, Member (T)
1. M/s Elgi Building products Ltd. have filed the subject appeal against the order of the Commissioner (Appeals) Coimbatore, disallowing capital goods credit to ‘Chiller Plant’ an item of capital goods involving a duty of Rs. 2,63,133/- imported in May 1999 and installed in their factory at Pollachi. Show cause notice was issued on 2.4.01 proposing to disallow the credit in respect of the above item on the ground that the item falling under CSH 8418.10 was not covered by Rule 57Q of the Central Excise Rules, 1944. On conclusion of the adjudicating proceedings, Deputy Commissioner, Pollachi Division permitted the assessee to avail credit on the ground that Notification No. 6/97-CE (NT) dated 1.3.97 prescribing the items to be entitled to capital goods included goods falling under chapter heading 84.18.
2. On appeal, the Commissioner (Appeals) in the impugned order held that the goods falling under 85.18 were not covered by the Notification No. 6/97 dated 1.3.97 and that heading 85.18 appearing in the Notification was a misprint for 84.18.
3. In the grounds of appeal filed against the above order of the Commissioner (Appeals), the appellants have argued that no amendment to the Notification has been issued as regards heading 85.18 figuring in the Notification even though corrigenda have been issued since the issue of Notification 6/97. They have also argued that the adjudicating authority cannot modify the language of the law. The item imported is undisputedly an item of capital goods falling under chapter heading 84.18. Therefore, they were eligible for the credit. They had reversed the credit and prayed that the admissible credit may be allowed.
4. Heard both sides.
5. The official text of Notification No. 6/97 dated 1.3.97 was produced by the learned SDR. The relevant portion of the Notification reads as follows:
57Q Applicability. – (1) The provisions of this section shall apply to goods (hereafter in this section, referred to as the “final products”) described in column (3) of the Table given below and to the goods (hereafter, in this section, referred to as “capital goods”), described in the corresponding entry in column (2) of the said Table, used in the factory of the manufacturer of final products.
TABLE
S. No. Description of final products
Description of capital goods falling
within the Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986)
and used in the factory of the
manufacturer
(1) (2) (3)
1. All goods falling under heading All goods specified in the
Nos. 82.02 to 82.11; Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986),
other than the following,
namely:
2. All goods falling under chapter 84 (i) all goods falling under
(other than internal combustion Chapter 24; and (ii) all goods
engines falling under heading No. falling under heading Nos.
84.07 or 84.08 and of a kind used 36.05 or 37.06.
in motor vehicles, compressors
falling under heading No. 84.14
and of a kind used in refrigerating
and airconditioning appliances and
machinery, heading or sub-heading
Nos. 84.15, 85.18, 8422.10, 84.24,
84.29 to 84.37, 84.40, 84.50, 84.52,
84.69 to 84.73, 84.76, 84.78,
expansion valves and solenoid
valves falling under sub-heading
No. 848 1.10 of a kind used for
refrigerating and air conditioning
appliances and machinery);
It is seen that goods falling under heading 84.18 are eligible for capital goods credit in terms of the above Notification. Heading 85.18 appearing in the Notification cannot be construed as a misprint for heading 84.18. Shri K. Shivarajan, Chartered Accountant representing the appellants furnished a copy of the Bill of Entry covering the import of the subject item which showed the item as falling under CSH 841869 of the Customs Tariff, (corresponding to 8418.10 of the CETA). In the circumstances, there is no doubt that the appellants are eligible for capital goods credit on the subject goods as held by the original authority. Accordingly, the appeal is allowed.
(Dictated and pronounced in open Court)