1997 (10) TMI 205

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..... ]. - The issue for determination in this appeal arising out of the order passed by the Commissioner (Appeals), Central Excise, Chandigarh is the eligibility of Deltamoist Portable Digital Moisture Meter and spares used by the appellants herein for measuring percentage of moisture regained at various stages in the processing of textiles such as woollen fabrics, man-made fabrics, etc., to the bene .....

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..... hich is very necessary as any excess or reduced moisture during spinning can gives rise to quality control problem and result in waste. 4. As rightly pointed out by the learned Counsel, the process of measuring and testing of various inputs has been considered to be an essential process in completion and manufacture of certain final products and Modvat credit has been held to be available in .....

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..... grally connected with the production activity of the manufacture. The Bench has referred to an earlier order in the case of CCE, Meerut v. Modi Xerox against which a reference application was filed by the Department and rejected [as seen from 1997 (90) E.L.T. 214 (Tribunal) = 1997 (68) ECR 814], noting the judgment of the Hon'ble Gujarat High Court in the case of Industrial Machinery Manufacturers .....

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..... nd position, have been held to be capital goods in terms of Rule 57Q and entitled to credit in terms thereof. 5. The decision of the Tribunal in the case of Collector of Central Excise, Coimbatore v. Shanmugaraja Spinning Mills P. Ltd. reported in 1997 (89) E.L.T. 84 cited by the learned DR, in which it has been held that humidification plant cannot be considered as equipment for producing o .....

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..... the appellants is not practicable or possible without checking of the moisture content with the help of the disputed item - Deltamoist Portable Digital Moisture Meter. Accordingly, following the ratio of the earlier judgments of the Tribunal and also taking into consideration the findings of the Hon'ble Gujarat High Court, I hold that the item in dispute in this case is covered by the definition .....

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