2001 (10) TMI 106

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..... Gupta, J (Oral).]. - M/s. Punjab Tractors Ltd. is engaged in the manufacture of Fork Lift Trucks. It claimed Modvat credit on certain parts used for the manufacture of the said trucks. Vide order dated October 3, 1998, a copy of which is at Annexure P-1 with the petition, the Assistant Commissioner had disallowed the credit for an amount of Rs. 2,10,446/-. It was held that the benefit was not admi .....

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..... nal, the Revenue has filed the present petition under Section 35H(1) of the Central Excise Act, 1944. It maintains that the following question of law arises for the opinion of this Court :- "Whether Modvat credit under Rule 57A of the Central Excise Rules, 1944 (hereinafter referred to as the Rules) is admissible on the parts and accessories falling under Chapter sub-heading No. 8708.00 when used .....

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..... he respondent-company in respect of items which are used in motor vehicles. 7.We are unable to accept this broad proposition. A battery is used in a car as well as in a truck. Is the credit inadmissible to the respondent only because the battery is used in a car also? The plain answer is no. Similarly, the mere fact that certain parts are used in trucks as well as in other motor vehicles cannot i .....

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