2002 (6) TMI 459

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.... Shri H.C. Verma, JDR, for the Respondent. [Order]. - Appeal No. E/1768/2001/NB/SM : The appellants manufacture cement clinker falling under sub-heading No. 2502.10. They availed Modvat credit of Rs. 3,09,552/- in October/November, 1995 on the item - Packing Machine (constituted of different parts) under Rule 57Q of Central Excise Rules, 1944. They were however issued a show cause notice dat....

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....amount of Modvat credit. 2. The party filed appeal but the same is rejected by the Commissioner (Appeals), Bhopal vide his Order dated 30-4-2001. 3. This is an appeal against the impugned order of Commissioner (Appeals). I have heard Shri S.K. Bansal, Chartered Accountant for the appellants and Shri H.C. Verma, JDR for the respondents. The ld. Consultant for the appellants is conte....

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....s at the relevant time, nevertheless being located side by side, they would fall within the definition of one 'factory' and therefore the packing machine though meant for packing cement would be eligible for taking of the Modvat credit in their clinker unit. The ld. Consultant for the appellant in support of his contention has relied on the decision of the Tribunal in the case of Dhampur Sugar Mil....

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....s under Rule 57Q. In the present case, the final product of the unit in which the Modvat credit is availed is clinker which is neither packed nor the machine is used for it. The machine is used for packing cement which is not the final product of this unit. The cement is manufactured in another unit of the same party. The Modvat credit therefore is not admissable to the appellants on such packing ....