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2016 (11) TMI 917 - AT - Central ExciseWhether the appellant is entitle for Modvat credit in respect of testing instrument namely Instron Model 14464 Table Mounted Universal Testing Instrument under the Capital goods in terms of Rule 57Q of Erstwhile Central Excise Rules, 1944? - Held that: - the testing instrument is used for testing of raw material as well as finished goods. The testing of raw material and finished goods is integral part of the manufacturing process of the final product therefore it cannot be said that testing instrument is not used in the manufacture of final product. In the various judgments Modvat credit under the Capital goods was allowed in respect of testing equipment and apparatus. Reliance placed on the decision of the case of OBLUM ELECTRICALS INDUSTRIES PVT. LTD. Versus COMMR. OF C. EX., HYDERABAD [2003 (1) TMI 491 - CEGAT, BANGALORE] The Tribunal consistently held that testing process is vital part of the manufacturing of final product therefore the credit of testing instrument is admissible. As per my above discussion, which is based on judgments as cited above, the appellant is entitle for the Modvat credit under Rule 57Q in respect of testing instrument. The impugned order is set aside and appeal is allowed.
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