TMI Blog2007 (9) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... e case, in brief, are that the appellants are engaged in the manufacture of Graphite Electrodes classifiable under sub-heading 8545.00 of Central Excise Tariff Act, 1985. A show cause notice was issued alleging that the appellants availed irregular Modvat credit of Rs. 2,69,280/-. It has been alleged that the appellants supplied the defective machines to M/s. HMT Ltd. for repair and air-conditioni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availed the credit on the basis of duty paying documents on the spares used in CNC machine supplied by M/s. HMT Ltd. He has taken to the Bench copy of the Invoice No. 7 dated 26-8-2000 issued by the HMT Ltd. to the appellants and the Purchase Order placed by the appellants in respect of purchase of the CNC System. The main contention of the ld. Advocate is that there is no dispute that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot receive the accessories in its form and, therefore , they are not entitled to take the credit. 4. After hearing both the sides and on perusal of the records , it is seen from the adjudication order that M/s. HMT Ltd. returned the said CNC machines to the appellants after paying duty on the fresh spare inputs used in the said machines. Thus , it is clearly evident that the appellants availed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoice issued by the said party vide which machinery was purchased. In such circumstances , the Tribunal has rightly observed that the assessee could not be prevented from taking credit on the ground that the Duty paid on the supplier was excessive. I find that the Department did not dispute that the credit availed by the appellants on duty paid spares were used in the CNC system and received ..... X X X X Extracts X X X X X X X X Extracts X X X X
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