RAJESH BALIA, J. - (1.) HEARD learned Counsel appearing for the parties.
(2.) THIS application is under Section 35H(1) of the Central Excise Act, 1944. This has arisen because the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (for short 'CEGAT') by its order dated 20 -2 -2001 has rejected the applicant's application under Section 35G(3) of the Act of 1944. An application to refer the following question said to be arising out of its appellate order to this Court for its opinion has been made : - 'Does the learned Tribunal has the power to allow the benefit of Modvat credit to the goods under Rule 57Q of the Central Excise Rules, 1944 which are otherwise not specifically mentioned in the Rule itself ?' The question has been raised in the context of the facts and circumstances about which there is no dispute that the articles in question are voltage regulators. The assesses has claimed Modvat credit of Rs. 30,320/ - in respect of excise duty paid on voltage regulators used by him in his factory premises as an equipment, which regulate the voltage of electricity flow to the machines used in the manufacture of textiles by the assessee in order to protect the machine from any damage which may occur due to fluctuation in the voltage. The Assessing Officer found that the equipment has nothing to do with the manufacture of final product as it is neither a machine used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final product.
(3.) THE Commissioner of Customs (Appeals) accepted the contention of the assessee by upholding the ground raised by the assessee that voltage stabilizer is essential for stabilizing the flow of electricity for the proper functioning and maintenance of the machines to achieve a regular and proper production of the final product, as the power fluctuations is bound to cause damage to the machines. The voltage regulator is one of the essential equipment with the machine to run the machine properly. With this finding, the appeal was allowed. The order passed by the Assessing Officer was set aside.;