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2010 (4) TMI 411 - CESTAT, NEW DELHICenvat Credit- A show cause notice came to be issued to the appellants requiring them to show cause against denial of Modvat credit to the tune of Rs. 41,82,161/- . According to the Department the said Modvat credit was sought to be availed by the appellants claiming the items to be ‘capital goods’ within the meaning of the said expression under Rule 57Q(1) of the Central Excise Rules, 1944, when, in fact, the said items did not satisfy the requirements of the said expression. The adjudicating authority by its order dated 28th May, 2001 confirmed the demand to the tune of Rs. 41,81,811/- and ordered payment of interest thereon besides imposition of penalty of Rs. 50,000/-. Being dissatisfied, the matter was carried in appeal. However, the Commissioner (Appeals) by his order dated 17th August, 2004 partly allowed the appeal and modified the order while confirming the demand in relation to the major amount claimed thereunder. Held that- cutting repairing, installation and maintenance of plant and machinery do not form part of “process of manufacturing” final product although such activities are necessary to keep the plant in progress. No infirmity in impugned order which is upheld. Appeal dismissed.
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