2007 (12) TMI 208

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....nying the benefit of Modvat credit on the universal Measuring Machine, merely by recording a finding that no material has been produced to counter the positive finding recorded by a Lower Appellate Authority, without considering the entire aspects involved in the appeal? 2. Whether in the facts and circumstances herein, the Tribunal should have actually allowed the Modvat credit on the said universal Measuring Machine, by considering the same as falling within the purview of capital goods as defined in the then Rule 57Q of the Central Excise Rules, 1944 even by considering the undisputed factual position regarding its usage? 2. We have heard the counsel for the parties. 3. Petitioner is engaged in the manufacture of precision autom....

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....petitioner, authorities did not consider the reply filed by the petitioner to the show cause notice. According to her, if the reply had been considered by the authorities properly, they would not have held that the machine in question is not being used either for manufacturing the final products or intermediary products. Taking us through the reply to the show cause notice filed by the assessee, she contends that the machine in question is a sophisticated machine and the petitioner being a manufacturer of steering, gear boxes and other important machinaries in motor vehicle machines in question is being used to measure proper alignment of the gear box, wheel nut, steering gear such as box (Escort Box, M.F. Box, P.T.L. etc.) and if the produ....