- (1.) HEARD learned counsel for the petitioner -Revenue. No body appeared on behalf of the respondent.
(2.) THE Revenue is aggrieved against the appellate order dated 11.1.2000. passed by the Customs. Excise and Gold (Control) Appellate Tribunal. Eastern Zonal Bench. Culcautta in Appeal No. E -156/98 whereby it has been held that the air conditioners split type falling under heading 8415 were eligible capital goods for the purposes of mod vat credit. Learned counsel for the Revenue submitted that the learned Tribunal committed error of law by misreading Notification No. 14/96. dated 23.7.1996. which, in the facts of the present case was not applicable and if it is held to be applicable then it is mis held. It is submitted that in fact, the facts of the present case are covered by Notification No. 11/95 -CE -(NT), dated 16.3.1995. It is submitted that because of the reason that period involved in the present matter is October. 1995 and the Notification No. 14/96 came into operation from 23.7.1996 and before that. Notification No. 11/95 was operative which came into force from 16.3.1995.
(3.) WE have considered the submission of the learned counsel for the petitioner -Revenue. The respondent claimed modvat benefit on the air conditioners split type classified under heading 8415 of the Central Excise Tariff Act. 1985 in terms of the provisions of Rule 57 -Q. The Rule 57 -Q is as under: Rule 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 utilizing the credit so allowed towards payment of duty of excise leviable and for utilising the 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 575 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 products 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 manufacture of final products 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 weigh bridges used in the factory of the manufacturer. (2) Notwithstanding anything contained in sub -rule (1). no credit of specified duty paid on capital goods shall be allowed if such duty has been paid on such capital goods before the 1st day of March, 1994.;