2000 (4) TMI 667

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....R, for the Respondent. [Order]. - By the impugned order, the Commissioner of Central Excise (Appeals) has denied the benefit of Modvat credit to the appellants, who are manufacturers of woollen yarn, on the following items : (1) Extra Equipment, (2) Truing Machine, (3) Machinery for crushing, (4) Damper, (5) Vaccum Cleaner and (6) Pump spares. 2. I have heard both the sides and ca....

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....the final product. The appellants have not been able to rebut this finding. They have not substantiated their contention that this item is used for processing or producing goods. Hence I hold that this item is not capital goods and therefore, not entitled to Modvat credit under Rule 57Q. (3) Machinery for Crushing: This machine helps to crush coal for feeding into the steam generated in bo....

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....ed to maintain desired humidity for production of cloth, woollen fibre and yarn, it is to be treated as an item used for producing or processing of final products and hence I hold that it is entitled to capital goods credit under Rule 57Q. (5) Vacuum Cleaner : This is used to suck impurities like dust generated during processing of woollen fibre and this plays a crucial role in emergence o....