2015 (7) TMI 665

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt dated 24-11-2014 is allowed. 2. In the amended form, the question of law presented for our consideration by the Revenue in this appeal is as under : "2(a) Whether in the facts and circumstances of the case, the Tribunal has committed substantial error of law in holding that Modvat Credit is available to the respondent on capital goods viz. Pipes, cables, valve, cooling tower, etc. us....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y for such credit in view of Rule 57Q of the Central Excise Rules, 1944. The Tribunal, however, relied on the decision of Chennai Bench in case of Kothari Sugars & Chemicals Ltd. v. Commissioner of Central Excise, Trichy reported in 2006 (196) E.L.T. 35, held in favour of the assessee. In such decision, the Tribunal had come to the following conclusion : "2. Yet another decision of the Tri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at all. Nevertheless, the Division Bench decision cited by ld. Counsel are squarely in their favour and consequently the impugned order gets set aside and this appeal is allowed." 4. The Tribunal in case of Kothari Sugars & Chemicals Ltd. (supra), had proceeded on the basis that the capital goods were used for generation of electricity which was mainly used captively. In the present case a....