Customs, Excise and Gold Tribunal - Calcutta
Allied Resins & Chemicals Ltd. vs Commissioner Of Central Excise, ... on 28 September, 2001
JUDGMENT
Mrs. Archana Wadhwa
1. Vide the impugned Order, the authorities below have denied the benefit of MODVAT Credit of Rs.30,016.00 (Rupees thirty thousand sixteen) availed by the appellants on capital goods on the ground that the same are not covered by the provisions of Rule 57Q in as much as they are the items which are of a kind used in refrigerating and air-conditioning appliances and machinery.
2. The three disputed items and their use have been detailed by the appellants as under:-
(i) Item under Invoice No.3970 dated 10.3.97 - This machine is used for Phenol Formaldehyde Resin Powder in process line to maintain the required product temperature within safe limit. This is entirely related to the product quality.
(ii) Item under Invoice No.2763 dated 26.7.97 - It is a Spare Temparature Card for Sipart Controller Assembly. This Card is used with R.T.D. Sensor (Resistance Temperature Director).
(iii) Items under Invoice No. 2720 dated 26.7.97 - This Controller has been used for temperature control in Wessmann Burner Panel in Phenol Formaldehyde Resin Powder Plant. This is a Vital Component for the Burner for Temperature Control. Thus the above 3 items are essential for proper working of machinery and for proper production of finished goods.
3. The appellants' contention is that the items in question are not of a kind used for refrigerating and air-conditioning appliances and machinery. On the other hand, the lower authorities have simply gone by the fact that since the items fall under headings - 84.15 and 90.32, and are used for controlling the temperature, they are of a kind used for refrigeration and air-conditioning purposes. The expression used in Rule 57Q is not 'meant for aid-conditioning purpose', but for air-conditioning appliances and machinery. As such, it is necessary to find out the exact use of the goods and to examine as to whether they are the goods of a kind used for refrigerating and air-conditioning appliances and machinery.
4. It may be observed here that the expression for excluding the items under the provisions of Rule 57Q is 'other than of a kind'. As such, even if the items are not directly used for refrigerating and air-conditioning appliances and machinery but are of a kind, which is a wider expression, the same would be excluded from the definition of Capital Goods. Inasmuch as the lower authorities have not examined the issue from this angle, I set aside the impugned Order and remand the matter to the Assistant Commissioner for fresh adjudication after taking into account the appellants' submissions and the use of the items in question. The appeal is thus allowed by way of remand.