Customs, Excise and Gold Tribunal - Mumbai
Manikgarh Cement vs Commissioner Of Central Excise And ... on 6 July, 2001
ORDER
Gowri Shankar, Member (Technical)
1. The issue to be decided in this appeal is the eligibility for consideration as capital goods of various items. In the order impugned in this appeal, the Commissioner has held that they were not used for producing or processing or for bringing about any change in any substance for the manufacture of the final product and therefore they would not be capital goods.
2. The goods in question consist of electrical transformer, instrument cooling fan type, impeller shaft/FRB rear, ICWT Track F/E, spare for fluidomat, fluid coupling, shear pulley and super refractories. It is not in dispute that although none of these items is used directly in the manufacture of the final product, they are essentially components of the plant of the appellant without which the finished goods cannot be manufactured. Therefore, by applying the ratio of the decision of the Tribunal in Jawahar Mills Ltd vs. CCE 1999 (32) RLT 379 these goods would be entitled to be considered as capital goods.
3. The appeal is accordingly allowed and the impugned order set aside.