2011 (4) TMI 1090

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....mpath for the Respondent. JUDGMENT N. Kumar, J. - This reference is made to this Court by the Tribunal at the instance of the Revenue to consider the following question of law: "Whether CEGAT has committed an error in allowing the Modvat Credit under Rule 57Q, on capital goods which are exempted from duty by not taking into consideration Rule 57R(1) of Central Excise Rules, 1994 which ....

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....se Tariff Act, 1985 claiming exemption under Notification 162/86, dated 01.03.1985. The credit of duly paid on capital goods is admissible only when the capital goods are used in the manufacture of final products which are chargeable to Central Excise duty. In the instant case as the assessee is not manufacturing any final product which are cleared on payment of duty, he disallowed the credit of R....

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....ng the credit. Aggrieved by the said order, the present reference is filed. 4. Heard the learned Counsel for the parties. 5. It is not in dispute that the capital goods were purchased for the purpose of manufacturing the products in the assessee's factory. At the time of purchase, the excise duty was paid by the assessee on the said capital goods. After such purchase, the capital goods are u....