TMI Blog2002 (1) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of cement. They placed purchase order for supply of DG Set from Wartsila India Ltd. The applicant took Modvat credit as and when the items required for DG set were received in the factory premises of the applicant. The Department alleged that the Modvat credit could not be taken by the applicant as M/s. Wartsila was to supply the DG set and install it in the factory premises of the applicant. In reply the Counsel submitted as the applicant stated that stipulation in the contract was that engine, alternator and other parts constitute DG set were to be delivered at the applicant's factory premises and since the goods were received in the factory premises of the applicant the applicant was fully entitled to take Modvat credit on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct. In the instant case the final product is similar and even if the DG set happens to be exempt for the time being Modvat credit on the inputs and components needed for installation of a DG set will be eligible for Modvat credit. Learned Counsel submits that similar issue came up before the Tribunal in the case of Gujarat Ambuja Cement Ltd. v. CCE, Chandigarh reported in 2001 (130) E.L.T. 129 (T) = 2000 (93) ECR 226 and the Tribunal in this case held, "Commissioner has erred in holding that WDIL is the manufacturer and not GACL who are the owners of all parts and components used in DG set . Modvat credit is admissible to GACL in terms of Rule 57A read with Rule 57B(2)(i) and Rule 57T(7). The Tribunal held that DG sets in question are pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stinguishable inasmuch as in the case of Ambuja Cement it was parts and components that were coming and that were purchased by the applicant and not DG set as in the present case. Learned DR submits that Commissioner while adjudicating the case brought out this aspect clearly. He, therefore, prays that applicant was not entitled to take Modvat credit and therefore, should be directed to deposit the entire amount of duty, penalty and interest. 4. We have heard the rival submissions. On careful consideration of the submissions made we note that an agreement was entered into by the applicant with M/s. Wartsila Diesel India Ltd. In the contract the subject matter was indicated 'supply of one number DG set with common auxiliaries for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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