2005 (11) TMI 352

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....pellant. Shri R.D. Soni, Advocate, for the Respondent. [Order per : Moheb Ali M., Member (T)]. -  The Revenue is in appeal against the order of the Commissioner of Central Excise & Customs (Appeals). In the impugned order, the Commissioner (Appeals) upheld the order of the lower authority who dropped the proceedings initiated against the respondents for denying Modvat credit on washi....

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....id machines for trading purposes. 2. Heard both sides. 3. The Ld. Counsel for the respondents pleaded that what was imported were not finished washing machines, as reflected in the description given in Bills of Entry; that the respondents undertook certain operations on the washing machines which resulted in the manufacture of new product; that while clearing the washing machines d....

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....les, under Rules 51A as well as under Rule 173H, no manufacture is involved and therefore, the respondents are not entitled to take modvat credit on duty paid washing machines. However, while removing the machines from their factory, the respondents paid central excise duty, as if the machine was manufactured by them. This, in a way of neutralized the effect of taking credit. However, the facts re....