- (1.) THIS reference application has been filed under Section 35-G (3) of the central Excise Act, 1944 (for short, "the Act" ). According to the Department, the following question of law arises out of the order passed by the customs, Excise and Gold (Control) Appellate Tribunal, Chennai (CEGAT); which requires to be considered by this Court. "1. Whether the Hon'ble Tribunal was correct in extending the benefit of capital goods to "electric cables" under Rule 57-Q of the central Excise Rules, 1944 when are not used in the manufacture of final products?"
(2.) THE assessee, M/s. Lamina Foundries Limited, was engaged in the manufacture of excisable goods, during the period October 1994 to January 1995. It had availed the MODVAT credit of Rs. 1,01,101/- on electrical cables which were used for their manufacturing purposes. The assessee claimed the said MODVAT benefits under Rule 57-Q of the central Excise Rules.
(3.) RULE 57-Q reads as under: "57-Q. Applicability. (1) the provisions of this section shall apply to finished excisable goods of the description specified in the annexure below (hereinafter referred to as the "final products") for the purpose of allowing credit of specified duty paid on the capital goods used by the manufacturer in his factory and for utilising their credit so allowed towards payment of duty of excise leviable on the final products, or as the case may be, on such capital goods, if such capital goods have been permitted to be cleared under Rule 57-S, subject to the provisions of this section and the conditions and restrictions as the Central Government may specify in this behalf: Provided that credit of specified duty in respect of any capital goods produced or manufactured (a) in a free trade zone and used for the manufacture of final product in any other place in India; or (b) by a hundred per cent export oriented undertaking or by a unit in an Electronic Hardware Technology Park and used for the manufacturer of final product in any place in India, shall be restricted to the extent of duty which is equal to the additional duty leviable on like goods under Section 3 of the Customs Tariff Act, 1975 (51 of 1975) equivalent to the duty of excise paid on such capital goods. Explanation. For the purposes of this section. (1) "capital Goods" means. (a) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products; (b) components, spare parts and accessories of the aforesaid machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose; and (c) moulds and dies, generating sets and weighbridges used in the factory of the manufacturer. (2) "specified duty" means duty of excise or the additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975)". 3a. . The question that has been sought to be raised is that the electric cables used by the assessee for its foundry was not capital goods as defined under the above rule since it is not a "plant". ;