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2013 (7) TMI 836 - HC - Central ExciseCENVAT credit on capital goods - Rule 57AA of the erstwhile Central Excise Rules, 1944 in respect of Underground Telephone Cable falling under Sub Heading No.8544.90 - Assessee are manufacturers of cement, falling under Sub Heading No.2502.29 of the Schedule to the Central Excise Tariff Act, 1985 – Held that:- The Apex Court in the case Commissioner of C.Ex., Coimbatore Vs. Jawahar Mills Ltd.[ 2001 (7) TMI 118 - SUPREME COURT OF INDIA] pointed out to the definition of "capital goods" in Clause (c) to the Explanation to Section 57Q that "the goods enumerated in clause (c) need not be used for producing the final product or used in the process of any goods for the manufacture of final product or used for bringing about any change in any substance for the manufacture of final product and the only requirement is that the same should be used in the factory of the manufacturer. Further, the items considered in the cases decided by the Apex Court reported in [2001 (7) TMI 118 - SUPREME COURT OF INDIA] were power cables and capacitors in Jawahar Mills case; control panels, cables, distribution boards, switches and starters and air compressors in the case of Indian Refrigeration Co. Ltd.; electric wires and cables in the case of Kothari Sugar and Vijay Chemicals on appeals preferred by the Revenue. Thus, on a consideration of the provisions of Section 57Q, the Apex Court held that so long as the items in question are used in the factory for the manufacturer, the benefit of MODVAT credit could not be denied – Relying upon the decisions in the abovementioned case, the Cenvat credit was allowed to the appellant – Decided against the Revenue.
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