ORDER
Shri G.A. Brahma Deva
1. This appeal is filed by the Revenue. Whether following items are eligible capital goods to avail Modvat credit in terms of Rule 57Q of the Central Excise Rule is an issue to be considered in this case.
(a) Air Circuit Breakers : Oil Circuit Breakers : Circuit Breakers
(b) Switch Board
2. Arguing for the Revenue Smt. Radha Arun, SDR submitted that the above items cannot be considered as eligible capital goods in terms of Rule 57Q of the Central Excise Rules. While referring to the Explanation under Rule 57Q of the Central Excise Rules, she said that capital goods can be machines, machinery, plant equipment, apparatus, etc. as termed under sub clause (a); the components, spare parts and accessories of the goods, etc for the aforesaid machines, machinery, plant equipment, apparatus used for the purposes enumerated as per clause (b); and makes moulds and dies, generating sets and weigh bridges used in the factory of the manufacturers as per clause (c). She contended that it can be seen from the verdict of the Supreme Court in the case of Commissioner of Central Excise, Coimbatore Vs Jawahar Mills Ltd. reported in 2001 (132) ELT 3 (SC) wherein it was held that the goods indicated in clause (c) need not be used for producing the final product or used in the process of any goods for the manufacture of final products or used for bringing about any change in any substance for the manufacture of final product and the only requirement is that the same should be used in the factory of the manufacturer. She said that in other words the items appear either in clause (a) or clause (b) must be used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product and since the item in present case as such is not brought out any change or used in manufacturing the final products, the same is not eligible capital goods in terms of Rule 57Q of the Central Excise Rules.
3. Replying Shri Rajeshawara Sastry, learned Advocate submitted that the verdict of the Supreme Court as argued by other side is not correct. On the other hand, since the items such as power cables and capacitors, control panels, cables distribution boards, switches and starters, etc were considered to be capital goods though they have not taken part directly in the process of manufacture of finished products. The Supreme Court has clearly held that these items are eligible capital goods in terms of Rule 57Q of Central Excise Rule while upholding decision of the Tribunal. Further he said that the very items have already been considered by the Tribunal holding that they are eligible capital goods. With reference to the Air circuit breakers, Oil circuit breakers and Circuit breakers, he said that the items are covered by the following decisions –
(i) CCE Meerut Vs Banwari Paper Mills Ltd – 1999 (114) ELT 726 (T)
(ii) Bell Granito Ceramica Ltd. Vs CCE & C Vadodara – 1999 (105) ELT 487 (T)
(iii) CCE Meerut Vs Modi Rubber Ltd – 1999 (114) ELT 724 (T)
4. With reference to the Switch Board, the Tribunal in th following decision held that the Switch board is eligible item in terms of Rule 57Q of the Central Excise Rule –
(i)India Glycols Ltd Vs CCE Meerut – 1998 (100) ELT 217 (T)
(ii)Jindal Strips Ltd. Vs CCE New Delhi – 1999 (114) ELT 731 (T)
(iii) CCE, Nagpur Vs Indo Rama Synthetics India Ltd. – 1999 (113) ELT 481 (T)
(iv) Grasim Cement Vs CCE Raipur – 1997 (96) ELT 354 (T)
Further he said that no appeal has been filed with reference to the above decisions covering the items in question. Accordingly he requested to dismiss the appeal filed by the department.
5. Smt. Radha Arun, SDR was not in a position to substantiate whether decision referred to by the Counsel has been reversed by the Supreme Court.
6. In the facts and circumstances and in view of the fact that the eligibility of the very items have already been considered by the Tribunal, I accept the pleas of the party. Accordingly the appeal filed by the department is hereby dismissed. Cross Objection is also disposed of in the above terms.
(Pronounced and dictated in the open court)