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2010 (8) TMI 340 - BOMBAY HIGH COURTCenvat Credit – Department disallowed the Modvat credit of Rs. 1,10,589/- availed by the Respondent on the inputs i.e. Hydrochloric acid and Sulphuric acid and thereby confirmed the demand to that effect under Rule 57-I of the Central Excise Rules 1944 and imposed penalty of Rs. 20,000/- under the provisions of Rule 173Q of the said Rules - In Metro Readywear Company v. Collector of Customs [1976 -TMI - 40468 - HIGH COURT OF KERALA] of the High Court of Kerala at Ernakulam it was held that the brassieres were undoubtedly undergarments falling within the description "articles of ready-to-wear apparel – Thus it was held that the process of purification and filtration being incidental or ancillary to the manufacture of a marketable product, the Respondent was entitled to Modvat credit on the inputs involved in the said process – In that view of the matter, we do not find any merit in the above Appeal and by answering the question of law in negative i.e. in favour of the assessee the same is accordingly dismissed
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