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2012 (12) TMI 266 - HC - Central ExciseHot Melt Unit - Capital Goods - Rule 57-Q - held that:- Marketability is an essential criterion for determining the liability of goods to excise duty and the process of rendering goods to market is a manufacture - end products manufactured by the respondents cannot be marketed without proper packing and therefore the modvat credit on the impugned machine used for packing of such goods is admissible as capital goods under Rule 57-Q." - The denial of the credit for this reason therefore cannot be sustained". In the present case "Hot Melt Unit" was admittedly used by the assessee while packing their finished goods - "welding electrodes". Since packing is held to be one of the essential components of the manufacturing process of the finished goods and being in the nature of incidental or/and ancillary to the main manufacturing activity, the assessee in this case was rightly held entitled to claim modvat credit on the item - "Hot Melt Unit" treating the same as capital goods under the Rule 57-Q ibid for claiming benefit - issue sought to be urged by the applicant (revenue) no longer remains resintegra - no referable question of law arises in the case - reference application fails and is accordingly dismissed. Decision in EASTEND PAPER INDUSTRIES Versus COLLECTOR OF C. EX., CALCUTTA [1989 (8) TMI 81 - SUPREME COURT OF INDIA] and Dharampal Satyapal v. Commissioner of Central Excise, Delhi- I, New Delhi [2005 (4) TMI 66 - SUPREME COURT OF INDIA] followed.
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