2000 (1) TMI 521

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....R, for the Res-pondent. [Order]. - The Respondents are manufacturer of Grinding Wheels, Bonded Abrasives etc. They availed Modvat credit on capital goods used in the manufacture of the said product. They had taken Modvat credit on Energy savings system with Micro Processor on the ground that the said items is used to reduce Amps, KW, KVH and KVA wastefully consumed in a factory resulting in ....

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....manufacture or processing is not required for becoming eligible for Modvat credit. It has also been submitted that the decisions quoted by the Revenue are not any more applicable in view of the Larger Bench decision of the CEGAT in the Jawahar Mills v. C.C.E. case reported in 1999 (108) E.L.T. 47 (T) wherein the Tribunal held that the contention that capital goods must have direct involvement with....