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2015 (11) TMI 597 - CESTAT MUMBAI

2015 (11) TMI 597 - CESTAT MUMBAI - TMI - Disallowance of MODVAT Credit - Charging machine - Capital goods - Held that:- On the issue of admissibility of modvat credit under Rule 57Q in respect of material handling equipment. In the present case also charging machine is used as a material handling machine therefore as per the use of the machine as well as issue supported by various judgments, the credit is admissible. As regard lathe machine, it is used for maintenance of rollers which is used i .....

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ectly used in the manufacture of final product i.e. aluminium product in the factory of the appellant. - even machine used in the work shop for maintenance are eligible for the modvat credit. I am therefore of the considered view that both the items i.e. Charging machine and lathe machine are qualified as capital goods and squarely covered under the of definition of capital goods provided under 57Q of Central Excise Act, 1944, hence eligible for modvat credit, therefore the impugned order is mod .....

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es and lathe machines. Aggrieved by the said order the appellant is before me. 2. Shri. Rajesh Ostwal, Ld. Counsel for the appellant submits that appellant is a manufacturer of various Aluminium products for manufacturing the same, charging machine is used for transportation aluminium coils from charging section and loading inside the annealing furnace and take it out from the furnace. Thereafter annealing aluminium coils is part of the process for manufacture of aluminium products. It is his su .....

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d by Supreme Court in the case reported at 2002(145) ELT A86(SC)]. (d) Banco Products (India) Ltd. Vs. CCE [2009(235)ELT 636(Tri.LB). All the above judgments are on the issue of admissibility of modvat credit under Rule 57Q in respect of material handling equipment. In the present case also charging machine is used as a material handling machine therefore as per the use of the machine as well as issue supported by various judgments, the credit is admissible. As regard lathe machine, it is used f .....

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or which lathe machine is used therefore the use of roller and maintenance thereof for further use in the manufacture of final product is directly related to their manufacturing activity and therefore credit should be allowed on lathe machines. 3. On the other hand, Shri. H.M. Dixit, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that as regard lathe machines, in the judgments relied upon by the Ld. Counsel in the case o .....

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coils with the help of charging machine is not ancillary process of manufacturing therefore is not used for manufacturing process hence is not eligible for modvat credit under Rule 57Q of Central Excise Rules, 1944. 4. I have carefully considered the submissions made by both sides and perused the record. 5. As regard the charging machine, it is observed that the use of the machine is not under dispute that the charging machine is used for transporting aluminium coil into the furnace and taking .....

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