Customs, Excise and Gold Tribunal - Delhi
Max G.B. Ltd. vs Cce, Chandigarh on 1 May, 2001
ORDER
1. Commissioner (Appeals) has denied Modvat credit on 'wires and cables' and 'electric control panel' on the ground that the items are not capital goods as they do not perform the requisite function of capital goods, namely, processing or producing any goods or bringing about any change in any substance for the manufacture of final product.
2. On hearing Shri V. Swaminathan, Learned Advocate and Shri Swatanter Kr., Learned JDR and noting the decision of the Larger Bench in the case of Jawahar Mills Ltd. 1999 (108) ELT 47 which has been re-affirmed in Surya Roshini Ltd. 2001 (128) ELT 293, I hold that Modvat credit is admissible to these items as they are covered by the definition of capital goods under Rule 57Q. Accordingly, the impugned order is set aside and the appeal allowed.