2000 (11) TMI 255

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....sent appeal of the Revenue is as to whether the respondents are entitled to take the modvat credit of duty in respect of representative samples of tyre cord fabrics of high tenacity yarn which are being used by them for testing/quality control purposes. As per the Revenue since the samples are not being used as an in-process input in the manufacture of the final product of the assessee, they canno....

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....he same. A penalty of Rs. 100/- has also been imposed on the respondents. On an appeal against the above order Commissioner (Appeals) has reversed the said order of the Asstt. Commissioner. Being aggrieved with the Commissioner (Appeals)'s order Revenue has filed the present appeal. 3. I have heard Shri V.K. Chaturvedi, ld. SDR for the Revenue. Nobody has appeared from the respondents' side. ....

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....e purposes of modvat credit it is not relevant that the inputs are actually present in the final product. Testing, being an essential part and parcel of the manufacturing process of the final product and for excelling in quality of the final product has to be treated as the inputs only. The testing is being done in the respondents' factory premises and the same can be safely concluded to be ancill....