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2016 (11) TMI 917 - CESTAT MUMBAI

2016 (11) TMI 917 - CESTAT MUMBAI - TMI - Whether the appellant is entitle for Modvat credit in respect of testing instrument namely Instron Model 14464 Table Mounted Universal Testing Instrument under the Capital goods in terms of Rule 57Q of Erstwhile Central Excise Rules, 1944? - Held that: - the testing instrument is used for testing of raw material as well as finished goods. The testing of raw material and finished goods is integral part of the manufacturing process of the final product the .....

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fore the credit of testing instrument is admissible. As per my above discussion, which is based on judgments as cited above, the appellant is entitle for the Modvat credit under Rule 57Q in respect of testing instrument. The impugned order is set aside and appeal is allowed. - APPEAL NO. E/753/97 - Order No. A/86564/16/SMB - Dated:- 17-3-2016 - Mr Ramesh Nair, Member(Judicial) M/s. Johnson & Johnson Ltd Versus Commissioner of Central Excise, Pune None for the Appellants Shri. Sanjay Hasija, .....

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rms of Rule 57Q of Erstwhile Central Excise Rules, 1944. The Adjudicating authority and first appellate authority denied the Modvat credit on the ground that the said testing instrument was used for testing purpose and not for producing or processing or bringing about any change in substance for manufacturing of final product. 3. None appeared on behalf of the appellant despite notice served through SDR. 4. On the other hand, Shri. Sanjay Hasija, Ld. Superintendent (A.R.) appearing on behalf of .....

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activity of testing it is not used for producing or processing of any goods or bringing any change in any substance therefore credit is not admissible on the said testing instrument. 5. I have carefully considered the submissions made by Ld. A.R. and perused the record. 6. As per the facts as appearing from the show cause notice as well as Adjudication order, the testing instrument is used for testing of raw material as well as finished goods. The testing of raw material and finished goods is i .....

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ls and components is an integral part of manufacturing activity. In the appellants case the computer in question carries out these vital functions. Therefore, it has a direct role to play in the manufacture. It is clear from the decisions relied on by the appellants that capital goods eligible for Modvat credit are not merely the goods which directly process the raw material. But also capital goods taking part in production in an indirect and auxiliary capacity. It is also clear that material ha .....

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pted. The computer in question, being directly deployed in the production process, was eligible for Modvat credit. 4.For the reasons stated above, the appeal is allowed with consequential relief, if any, to the appellants. COMMISSIONER OF C. EX., CHANDIGARH-I Versus CHANAB TEXTILE MILLS [2000 (120) E.L.T. 417 (Tribunal)] 4.The issue relating to the use of certain items in or in relation to the manufacture of the end products is already stattled by the above and many other decisions of the Tribun .....

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Industries Ltd. (Supra) is in respect of modvat credit on spectrophotometer - an instrument to measure colour proportion of plastic sheeting compound. It is held in this decision that the modvat credit available on this instrument as capital goods has clear nexus with the manufacturing process of final product i.e. wires and cables. In my view the role of the testing equipment under consideration in the manufacture of yarn is akin to that of the spectrophotometer in relation to the manufacture o .....

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YA TELELINKS LTD. Versus COLLECTOR OF CENTRAL EXCISE, RAIPUR [1999 (114) E.L.T. 362 (Tribunal)] 3.From the use and functions of the items as noted? in the impugned order, we can divide them into two categories (1) electrical items used for transmission/supply of power and (2) testing equipments for measuring or checking electrical quantities. The decision of the Larger Bench of the Tribunal in the case of M/s. Jawahar Mills and Others reported in 1999 (108) E.L.T. 47 in which electrical items ha .....

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