Commissioner of Central Excise, Vs. M/S. Nahar Fibres Ltd. - Court Judgment

Excerpt:
1. revenue filed this appeal against the order in appeal where the benefit of modvat credit in respect of distribution board and panels are allowed. the respondents vide letter dated 13.3.2001 made a request to decide the appeal on merit.3.the contention of the revenue is that distribution board and panels are not used for producing or processing of any products or for bringing about any change in any substance for the manufacture of final product.4. the commissioner (appeals) in the impugned order gave a specific finding that these are used to regulate the power supply to the machines. hence these are essential accessories for running the machines and without these distribution boards and panels, the manufacture of final product is not possible. this factual finding is not controverted by the revenue in the appeal. at the relevant time rule 57q of central excise rules reads that capital goods means 'machines, plant, equipment, apparatus, tools, applicances as well as their components, spare parts and accessories.' as the finding of the fact given by the commissioner that these are accessories of machines and without which the production of final product is not possible, i find in infirmity in the impugned order. the appeal is rejected.

Judgment:
1. Revenue filed this appeal against the order in appeal where the benefit of MODVAT credit in respect of Distribution Board and Panels are allowed. The respondents vide letter dated 13.3.2001 made a request to decide the appeal on merit.

3.The contention of the Revenue is that Distribution Board and Panels are not used for producing or processing of any products or for bringing about any change in any substance for the manufacture of final product.

4. The Commissioner (Appeals) in the impugned order gave a specific finding that these are used to regulate the power supply to the machines. Hence these are essential accessories for running the machines and without these Distribution boards and panels, the manufacture of final product is not possible. This factual finding is not controverted by the Revenue in the appeal. At the relevant time Rule 57Q of Central Excise Rules reads that capital goods means 'Machines, Plant, Equipment, Apparatus, tools, Applicances as well as their components, Spare parts and accessories.' As the finding of the fact given by the Commissioner that these are accessories of machines and without which the production of final product is not possible, I find in infirmity in the impugned order. The appeal is rejected.