2007 (10) TMI 258

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..... r]. - This is an appeal against denial of Modvat credit in respect of electrical spares for roll grinding machine and drill machine. 2. Learned advocate for the appellants took me to the finding of the Commissioner dealing with the denial of the credit in respect of the above two items. It is seen that the credit has been denied in respect of electrical spares on the ground that the item is used .....

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..... ts, spare parts and accessories of aforesaid machines, machinery, plant equipment, apparatus, tools or appliances used for aforesaid purpose." It was accordingly submitted that once the items are treated as spare it has to be considered as capital goods as defined under Rule 57Q and Modvat credit on the same cannot be denied. 3. As regards drilling machine, Commissioner (Appeals) has denied the s .....

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..... ar as the credit on electrical spares for grinding machine is concerned, I find that both the order-in-original as well as Commissioner (Appeals) has accepted the fact that there are electrical spare for roll grinding machine which is used to get correct surface finish on aluminium sheets. Once they are accepted as spare, they are adequately covered by the definition of capital goods under Rule 57 .....

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