9911796707
TMI Blog1997 (7) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... The issue in the appeal relates to the benefit of the Modvat credit in respect of machines which are used in the manufacture of cotton yarn falling under Tariff Heading 52.02. The machines were received by the respondents during the period from April '94 to October '94, before the issue of Notification 60/94, dated 21-10-1994 under which the Tariff Heading 52.02 as the notified finished product c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cannot be taken into reckoning for Modvat purposes when a particular item under which the goods which were produced by these machines came to be notified. He has pleaded, therefore, the learned lower authority order allowing Modvat credit in respect of the machines received prior to 21-10-1994 is not sustainable. He has pleaded that the goods were found to be marketable and the Modvat eligibilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be marketable by the learned lower authority. The appellants have not filed any cross appeal against this finding. This finding, therefore, have become final. The issue, therefore, has to be considered is whether the machines in which certain excisable goods can be taken to be as eligible capital goods for Modvat purposes. The admitted position is that the goods as produced in these machines f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be taken into reckoning for grant of Modvat credit even if subsequently the particular machine comes within the purview of the definition of capital goods by amendment of Rule 57Q.
6. In view of the above, I hold that the learned lower authority could not have allowed the Modvat credit, as held above and the appeal of the revenue has to be allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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