TMI Blog2005 (11) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... 30-4-2003 passed by the Commissioner of Central Excise, Belgaum. The appellants have been denied the benefit of Modvat credit in respect of capital goods which are used in the manufacture of goods which carries nil rate of duty. The appellants were job workers and had received the items for further manufacturer. The items received by them where in terms of Cenvat rules and after the process of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the view taken by the Commissioner to deny the Modvat credit on capital goods is not in terms of the following rulings. (a) CCE, Bhopal v. Bhaskar Industries Ltd., reported in 2003 (54) RLT 301 (CEGAT-Del.). (b) M/s. Rico Auto Industries Limited v. CCE, Delhi reported in 2003 (54) RLT 304 (CEGAT-Del.). (c) M/s. Bharat Forge Limited v. CCE, Pune-III reported in [2004 (165) E.L.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture of dutiable goods. Hence, in light of the cited judgments, the benefit of Modvat credit on the capital goods cannot be denied. The Tribunal's ruling in the case of CCE v. Bhaskar Industries Limited (supra) has upheld the grant of Modvat credit when the machinery has been used for manufacture of exempted and dutiable goods likewise in the case of M/s. Rico Auto Industries Limited (supra), in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of exempted product and since it generated dutiable wastes, the benefit cannot be denied and also for the reasoning that the said capital goods were subsequently used for manufacture of dutiable goods. The Counsel did not argue on other matters dealt by the Commissioner in the Order. The learned Counsel in fact submitted that they are not contesting the issue pertaining to valuation and interes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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