2001 (11) TMI 201

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....diate goods nor it is used in the process of manufacture to bring about any change in any substance. He also came to a conclusion that the said machine is not used directly in relation to manufacture of the intermediary or final product and therefore its use is neither incidental or ancillary to the production of goods. He therefore denied the Modvat credit under Rule 57Q. 3. The question of denial of Modvat credit on capital goods under Rule 57Q has finally been settled by the Supreme Court in the case of Jawahar Mills [2001 (132) E.L.T. 3 (S.C.)], wherein they have upheld the Revenue's plea that credit cannot be availed for items which are alleged found, to be not used directly or indirectly in relation to the manufacture of the final ....

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.... production. This clearly indicates as to how Universal Measuring Machine render good assistance in manufacturing process. Appellants have exhibited sample-checking report obtained from this machine, which has not received attention which it ought to be. Merely because appellants made a statement that previously such checking were done manually no stretch of imagination could be made as if such machine is not used in the manufacturing process. Appellants submit that they are under the spade work for obtaining ISO 9002 Certificate for which stringent accuracy has to be maintained regarding the standard for which complying with specified measurements is the basic requirement." 5. The appellants also relied on the decision in the case of....