2002 (11) TMI 724

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....appeal filed by M/s. Cheran Spinners, Erode against the order-in-original No. 60/1997 dated 1-12-1997 passed by the Assistant Commissioner of Central Excise, Central Excise Division, Erode. The brief facts of the case are that the appellants are manufacturers of cotton flax blended yarn and cellulose spun yarn  etc. classified under 5203.00 and 5505.00 respectively of CETA, 1985. They took Mo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he capital goods draw frame and ring frame had not at all been used in the process of cotton carded/combed. They are used only after the stage of cotton carded/combed. They had been used exclusively for the manufacture of cotton yarn on which duty is payable. Therefore, their action of taking of Modvat credit in respect of draw frame and ring frame  are absolutely  correct. In the circum....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ory machines only. So their action of availment of Modvat credit is absolutely correct. 3. I have given my careful consideration to the facts and circumstances of the case and the submissions  made in the grounds of appeal and during  the personal  hearing Modvat credit on capital goods was introduced w.e.f. 1-3-1994 under Rule 57Q to 57U of Central Excise Rules, 1944. My pr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e. The Hon'ble CEGAT has remanded the matter in respect of the speed frame in case of Brindavan Cotton Mills (P) Ltd., to find out whether the impugned machine is used after the stage of cotton (carded or combed), which is exempted as intermediate product. So if it is proved that speed frame and draw frame are utilized after the process of cotton (corded or combed) they are eligible for Modvat cre....