2003 (9) TMI 266

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.... Ali M., Member (T)]. - The appellant is a manufacturer of Synthetic Blend Spun Yarn. A show cause notice was issued to the appellants asking them to explain why the credit on capital goods availed during the period September, 1994 to October, 1994 to the tune of Rs. 57,37,248/- should not be denied under Rule 57U of Central Excise Rules and why penalty should not be imposed on them. In the impugn....

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....redit only after 16-3-95 not prior to that, since appellants have taken credit prior to this date. 3. Battery Charger Not a part of the machinery. It works as a substitute of power supply. 4. Cables Are used for bringing electric supply and not integral part of the machinery 5. Decofoam Is not capital goods but is an input in the manufacture of final goods. 6. BOPP....

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....lant and/or not part and parcel of the machinery itself. These materials did not directly or indirectly contribute to the production of goods. We hold that the Modvat credit has been rightly denied on these items. In so far as items mentioned at Serial Nos. 2 to 7, we hold that the appellants are entitled for Modvat credit on these goods as per the Tribunal's and Supreme Court's decisions in vario....

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....should not have allowed Modvat credit on indicator, PVC Eleminators and Switch Boards as the names themselves are suggestive of the fact that they do not fall within the purview of Rule 57Q of the Central Excise Rules. It is the Department's further contention that the indicators have been covered under Rule 57Q only w.e.f. 16-3-1995 under Notification No. 11/95-C.E. (N.T.) but the credit was take....