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TMI Blog2004 (7) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal No. 4/02, dated 3-1-2002. The issue before the Commissioner was with regard to eligibility of Modvat credit on air-conditioners, dumpers, excavators and rebars under Rule 57U of Central Excise Rules, 1944. 2. Ld. Advocate submitted that air-conditioners were used in the instrumentation room. The instrumentation room had been fitted with controlling equipment for manufacture of cements and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for the purpose of protecting the machinery and in the operation of the machinery as held in the case of Lloyds Metals & Engineers Ltd. v. CCE, Nagpur [2003 (162) E.L.T. 847 (T) = 2003 (59) RLT 342] and that of United Phosphorous Ltd. v. CCE, Vadodara [2002 (150) E.L.T. 650]. He also submitted that penalty is not leviable under Rule 173Q on the allegation of inputs if the credit was wrongly tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cement which was not installed in the production room to maintain the temperature but for the purpose of manufacture of cement. Hence, the judgments relied by the Counsel wherein the air-conditioners had been setup to maintain the temperatures for production is distinguishable. He relied on the judgment rendered by the Tribunal in the case of Usha Ispat Ltd. v. CCE, Pune [2000 (125) E.L.T. 1184] w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eful consideration we find merit in the submissions made by ld. SDR. The air-conditioner has been installed in the instrumentation room which is admittedly not part of the process of manufacture of cement and the air-conditioner has not been installed in the production room for maintaining the production of cement. Therefore, in terms of the judgment rendered in the case of Usha Ispat Ltd. (supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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