2004 (10) TMI 434

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..... -  This appeal of the assessee is against denial of capital goods credit under Rule 57Q to an item called "Speed Frame" which was used during the relevant period (Sept. '94) for the preparation of Cotton (Carded/Combed) from which Cotton Yarn was manufactured and cleared as final product. It is submitted by the appellants that capital goods used for processes preparatory to manufacture of ....

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....The Revenue in that case contended that, as the said intermediate product, classified under Heading No. 52.02, was not specified as final product under Rule 57Q prior to 21-10-1994, capital goods used for preparing such intermediate product during the said period were not eligible for Modvat credit under the said rule. This argument of the Revenue was rejected and it was held that merely because t....