2012 (7) TMI 636

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.... that it is used for manufacture of intermediary products and not the final products" 2. The appellant had purchased one electric 'CNC wire cut electric discharge machine' on 14.3.1995 and had filed a declaration under Rule 57(T)(1) of the Central Excise Rules, 1944 (Rules for short). By order dated 18.5.1999, the Assistant Commissioner held that the excise duty paid on the aforesaid machine cannot be credited in the Modvat account as the said machine was used for manufacture of dyes and tools which were not the final products. The final product of the appellant was stamping and lamination in which these dyes/tools were used. The modvat credit of Rs. 1,30,000/- was directed to be withdrawn and penalty of Rs. 25,000/- was imposed on the a....

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....ing the credit so allowed towards payment of duty of excise leviable on the final products, or as the case may be, on such capital goods, if such capital goods have been permitted to be cleared under rule 57S, subject to the provisions of this section and the conditions and restrictions as the Central Government may specify in this behalf: Provided that credit of specified duty in respect of any capital goods produced or (a) in a free trade zone and used for the manufacture of final products in any other place in India; or (b) by a hundred per cent export-oriented undertaking or by a unit in an Electronic Hardware Technology Park and used for the manufacture of final products in any place in India, Shall be restricted to the ext....

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....laminates or stamping with his name, logo etc. and for this purpose tools and dyes have to be first produced and manufactured as per the needs and requirements of the customer. Then, and thereafter lamination and stamping is possible. The whole process is an integrate one. Production of the dyes or stamps by the machine is covered under Clause (a) of the Explanation. The CNC wire cut electric discharge machine is a tool/ machine used for producing or processing of any good. The last words 'bringing about any change in any substance for the manufacture of final products' is also broad and wide. The machine/tool in question brings about change in substance and this enables production/manufacture of the final product. Without the change. i.e.,....