2005 (6) TMI 165

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....of CNC Machines and other Machines for special purposes. They avail Modvat/Cenvat credit on inputs used in the manufacture of machines. These machines, in turn, are utilized within their factory in their Precision Components Division for job work purposes. Exemption is claimed on these machines under Notification 67/95-C.E., dated 16-3-1995. The issue in this case relates to the denial of Cenvat credit availed on the inputs used in the manufacture of the machines capitalized in the factory of the appellant and used for job work. Revenue proceeded against the appellant for denial of Cenvat credit in respect of the inputs used in the manufacture of machines capitalized and used in their factory on the ground that these machines were put to us....

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....dvat credit on the inputs used in the machinery, which are capitalized and used, for job work cannot be denied. The impugned order is therefore bad in law. He relied on a number of case laws. Sterilite Industries (I) Ltd. v. CCE, Pune - 2005 (183) E.L.T. 353 (T.- LB) = 2005 (68) RLT 25(CESTAT- LB). In the above case, it has been held hat the credit of duty paid on inputs used in the manufacture of final products cleared without payment of duty by job worker for further utilisation in manufacture of dutiable final product by principal manufacturer would not be hit by the provision of Rule 57C. Escorts Ltd. v. CCE, Delhi - 2004 (171) E.L.T. 145 (S.C.) = 2004 (64) RLT 227 (SC). It has been held that inputs used in the manufacture o....