JUDGMENT :

T.S. Sivagnanam, J.

(Prayer: APPEAL under Section 35G of the Central Excise Act, 1944 against the order dated 29.5.2008 passed by the Customs, Excise and Service Tax Appellate Tribunal, Chennai made in Final Order No. 517/2008.)

1. This appeal has been filed by the assessee under Section 35G of the Central Excise Tax Act, 1944 (‘the Act’ for brevity) challenging the order dated 29.5.2008 made in Final Order No.517/2008 on the file of the Customs, Excise and Service Tax Appellate Tribunal, Chennai (‘the Tribunal’ for brevity).

2. The appeal was admitted on 05.9.2008 on the following substantial questions of law:

“1. Whether the order of the Tribunal is vitiated inasmuch as it fails to take into account relevant aspects viz.

a. mode of annexation

b. object of annexation

c. beneficial enjoyment and thus stands vitiated ? and

2. Whether the first respondent ought to have allowed credit under the Capital Goods Scheme if not under the Inputs Scheme?”

3. We have heard Mr.G.RM.Palaniappan, learned counsel for the appellant and Mr.V.Sundareswaran, learned Senior Standing Counsel appearing for the Department.

4. We need not labour much to answer the substantial questions of law framed for co