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2013 (3) TMI 605 - CHHATTISGARH HIGH COURTDenial of MODVAT Credit - Capital goods - Held that:- Iron scrap and metal scrap arise in the process of repair and maintenance of machinery and cement manufacturing plant has no contribution or effect on the process of manufacturing cement, which is excisable end-product. Repairing activity cannot be called as part of manufacturing activity in relation to production of end-product - In case of cement manufacture, the metal scrap and waste arise only when the assessee undertakes repairing and maintenance work of capital goods and do not arise during the course of regular manufacturing. But in the case of manufacturing of ribbed bars or other goods, the aforesaid scraps are necessary products which generate during the course of process and therefore the case of Grasim Cement (2011 (10) TMI 2 - SUPREME COURT OF INDIA) is distinguishable on the ground of facts. - in absence of any declaration required under Rule 57G of the Rules, 1944, by passing the order impugned, the CEGAT has not committed any illegality requiring any interference. - Decided against assessee.
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