2002 (5) TMI 140

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....ly be used in the manufacture of final products. It was also submitted that the training centre is part and parcel of the factory premises. The Deputy Commissioner who adjudicated the proceedings disallowed Modvat credit availed on capital goods used in the training centre on the ground that the impugned goods were not used in the manufacture of goods and also levied a penalty of Rs. 5000/- on the ground that the credit availed on capital goods was the irregular credit. On an appeal filed by the party, the Commissioner dismissed the appeal upholding the order passed by the Deputy Commissioner holding that the usage of capital goods in the manufacture of goods is essential for its Modvat eligibility. The party has become unsuccessful before ....

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.... the factory of manufacturer and not in the manufacture of final products. He also referred to the decision of the Supreme Court in the case of Jaypee Rewa Cement v. CCE, M.P. reported in 2001 (133) E.L.T. 3 (S.C.) wherein it was held that inputs need not be used only within the factory premises in terms of erstwhile Rule 57A of Central Excise Rules, 1944. Explanation contained in Rule 57A ibid is merely meant to enlarge the meaning of the word 'input' and does not in any way restrict the use of the input within the factory premises nor does require the inputs to be brought into the factory premises at any point of time. 4. Shri Narasimha Murthy, ld. JDR appearing for the Revenue justified the action of the authorities below in denying the....

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....also take note of the fact that the decision referred to by the Department Representative in the case of Usha Ispat Ltd. has not considered the effect of the amendment enlarging the scope of the Modvat provisions while denying the benefit. The effect of the amendment is, to avail Modvat credit on capital goods, it must be used in the factory of the manufacturer and that must find a place in the table annexed to the Rule 57Q. It is not in dispute that the training centre was also part and parcel of the factory. The Assistant Commissioner has given a finding that merely because the training centre is a part of the ground plan to the Registration Certificate does not get entitled to credit. This factual position was not disturbed by the Commis....