2008 (10) TMI 363

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....S/Shri M.P. Devnath and Rahul Mahajan, Advocates, for the Respondent. [Judgment per: Deepak Gupta, J.]. - This excise reference was admitted on the following questions of law:- "1. Whether in the facts and circumstances of the case, the Tribunal was correct in allowing benefit of Rule 57T(7) of the Central Excise Rules. 1944 to M/s. Gujarat Ambuja Cement Ltd. Solan holding them as a manufact....

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....ernization or expansion of the existing Cement Plant in terms of the erstwhile Rule 57-T(7) of the Central Excise Rules. 1944? 4. Whether in the facts and circumstances of the case, the Tribunal was correct in allowing Modvat Credit on parts, components and accessories of impugned D.C. Sets under Rule 57Q(1) (where under Modvat Credit is admissible on parts, components and accessories of capita....

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.... Himachal Pradesh. The respondent while setting up the factory also got installed a DGPP through another Company M/s. Wartsila Diesel India Ltd. (WDIL). WDIL further contracted out some of the works of the plant, especially the erection of the cooling tower to M/s. Paharpur Cooling Towers Pvt. Ltd. It is not disputed that the DCPP is used for running the factory of the respondent when there is pow....

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....ital goods by the manufacturer of specified goods. Under Sr. No. 5 to the table of the said Rule, a manufacture is entitled to claim Modvat Credit on account of the excise paid on the components, spares and accessories of the goods exempt. A DGPP is a capital good. If duty is paid on the components used in its manufacture, we see no reason why the manufacturer cannot claim Modvat credit for such d....