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2015 (9) TMI 932 - HC - Central ExciseDenial of MODVAT Credit - Whether items namely Synthetic Filter Cloth and Asbestos Mill Board said to be not directly used in the manufacture of Aluminium and Products thereof or are used as part of plant and machinery for production of Aluminium and Products thereof, can be considered as "inputs" eligible for MODVAT credits under Rule 57A of the Central Excise Rules, 1944 - Held that:- In order to construe the provisions relating to MODVET Credit, in Saraswati Sugar Mills Vs. Commissioner of Central Excise, Delhi [2011 (8) TMI 4 - SUPREME COURT OF INDIA], the Court considered the question, whether iron and steel structures manufactured and used captively in factory for installation of sugar manufacturing plant by Assessee can be classified as ''capital goods' under Rule 57Q of Rules, 1944. The Court held that provisions of Statute must be construed strictly and the Court neither should stretch the words nor add nor subtract words in order to bring in or include something therein. - both the items were part and parcel of machines, plants, equipments etc., used for producing and processing of goods, hence, were excluded specifically under Rule 57A, Explanation which excludes "machines, machinery, plant, equipment, apparatus, toots or appliances used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufacture of the final products". - Assessee was not entitled to claim MODVET Credit on 'Synthetic Filter Cloth' and 'Asbestos Mill Board' treating the same to be "inputs" under Rule 57A of Rules, 1944. The Tribunal taking otherwise view has clearly erred in law. - Decided in favour of Revenue.
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