2005 (3) TMI 635

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.... the Appellant. S/Shri B.L. Meena, SDR & C. Mani, JDR, for the Respondent. [Order (Oral)]. - These appeals are against orders of the Commissioner (Appeals) allowing Modvat credit on "Carding Machine" and "Speed Frame" respectively to M/s. Shri Lakshmi Spinners (P) Ltd. and M/s. Sri Venkateswara Textiles. M/s. Shri Lakshmi Spinners Pvt. Ltd. had taken Modvat credit of Rs. 1,92,520/- on 'Ca....

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....uty of excise or chargeable to 'nil' rate of duty. The condition was that such intermediate products should be specified as final products in the Table annexed to Rule 57Q(1). It was only with effect from 21-10-1994 that 'Combed/Carded Cotton' (intermediate product emerging in the process of manufacture of Cotton Yarn) was specified as a final product under Rule 57Q(1). The authorities below have ....

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....in the case of M/s. Sudarshanam Spinning Mills Ltd. (Supra), it was held that 'Carded/Combed Cotton' which emerged in the process of manufacture of cotton yarn was not marketable and hence not excisable and, therefore, the capital goods should be considered to have been used in the manufacture of 'Cotton Yarn' (dutiable final product) rather than in the manufacture of the intermediate. Admittedly,....