2003 (12) TMI 210

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.... Show Cause Notice proposing to deny them credit in respect of 14 groups of items and also to penalise them. The Original Authority allowed them credit on a number of items but disallowed credit amounting to Rs. 5,10,041.92 and imposed a penalty of Rs. 1 lakh. On appeal, the Commissioner (Appeals) allowed credit on some of the items and disallowed the credit on the following items against which th....

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.... Tribunal in the case of Century Cement v. Collector - 1997 (95) E.L.T. 69 (T). The appellants, on the other hand have cited the decision in the case of Mahiar Cement v. CCE - 2003 (159) E.L.T. 405 (T) = 2003 (55) RLT 299 allowing credit in respect of Welding Electrodes, Oxygen Gas and Dissolved Gas used for repairing and remaking of plant and machinery treating the same as used in or in relation ....

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....ding Electrodes by the lower authorities requires to be upheld. 3. In respect of credit on red colour, the lower authorities have denied the same on the ground that the same is used for painting Naphtha Pipe Line carrying Naphtha and have held that such use cannot be treated as use in the manufacture of final product. The said decision by the lower authorities also appears to be justified in th....

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....oods to be capital goods and not as inputs since these cannot be considered as used in the manufacture of the final product going by the ratio of Jaypee Rewa (supra) which in turn in based on the ruling of the Apex Court. Capital goods and components of capital goods which are not eligible directly for claim of Modvat credit under Rule 57Q cannot be considered as inputs and allowed input duty cred....