TMI Blog2001 (9) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants manufacture EPAX/EPABX machines. Some of the goods manufactured by the appellants were capitalised for use in their own factory. The value of such goods, according to Balance Sheet for 93-94 was Rs. 17,99,600.15. The impugned order has confirmed duty demand in respect of these goods taking their value as more than Rs. 43 lakhs. The order also held that the appellants were not eligible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing activities. With regard to denial of Modvat credit, the appellants' contention is that the goods in question are used for testing and research and development of EPAX and EPABX. They submit that the goods so used are also eligible for Modvat credit as capital goods. During the hearing of the case, the appellants also raised a submission that show cause notice in the present case was time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods, since cost data supplied by them has been accepted by the Department. 4. We are not able to find any merit in the appellants' objection to the valuation, except with regard to addition made towards notional profit. Rule 6(b) of Valuation Rules permits valuation either based on value of comparable goods or cost of production. In the present case, the appellants are not claiming valuation ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant's claim that the capitalised goods were being used in testing and R D. We find no detailed finding on facts in the impugned order on the appellants' claim that the goods were used in testing. If the goods were, in fact, used for testing, they would be eligible for Modvat credit, their using in R D notwithstanding. 6. The appellants submission regarding time bar is also required to be con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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