Per S.S. Sekhon : This appeal is taken place for decision since the issue revolves the liability of Modvat credit on Computers.

2. As per the appellants' own submissions, the Computers are used for reducing the lead time in designing and drawing of the transformers which they are involved in manufacturing as their final products. They submitted that the Assistant Commissioner in the Order-in-Original has found that design and drawing if done manually requires about 12 weeks of lead time and in order to speed up the process of manufacturing activity, the designing work is carried out using these computers with an application of software called Computer Aided Design (CAD). By using this software lead time for design of transformer can be reduced from 12 weeks to about 6 weeks and this would facilitate speedy production process. Therefore computers in this case are used for designing of the transformers, which is the first process in the manufacture of transformers, should be considered as an equipment used for producing goods.

3. The Assistant Commissioner has found that the computers is not included in the definition of the capital goods, vide his reasoning recorded in Paras 5.1,