2002 (5) TMI 734

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..... [Order]. - This is an appeal filed by M/s. Shree Raj Texchem Ltd. against the order dated 17-7-2000 passed by the Commissioner of Central Excise (Appeals), Jaipur. The issue relates to disallowance of Modvat credit on capital goods. The amount involved is Rs. 2,05,017/-. The period in dispute is November '95 to December '95. Shri K.K. Anand, learned Advocate has appeared on behalf of the appella .....

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..... pointed out that the relief claimed is limited only to the extent of Rs. 59,597/-. Besides this, he has also contended that the adjudicating authority vide his order has indicated the use of the tools and at page 14 thereof, he has clearly held that the tools received along with the machines under a single invoice will have to be treated as part and parcel of the machines and thus credit on tools .....

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..... Surya Roshni Ltd. reported in 2001 (128) E.L.T. page 293 (T) and submitted that the machinery cannot work without the tools and as held in these decisions, that it is not necessary that it should have a direct use. Therefore, applying the ratio of the above said decisions, he submitted that Modvat credit cannot be denied on tools. Shri S.C. Pushkarna, learned JDR has appeared on behalf of the Rev .....

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