2005 (7) TMI 225

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....er Rule 4(5)(a) of CENVAT Rules from M/s. Ispat Industries Ltd. and returned the Briquette, for further use there for manufacture of Iron & Steel Products. 1.3. Credit is being denied on the grounds :- I have perused the case records and considered the arguments advanced in the appeal memorandum and reiterated at the time of personal hearing. The dispute lies in a narrow compass. The only point involved is whether the appellants were entitled to take capital goods credit on machine used for manufacture of non-dutiable goods. The appellants were using the said machine for making briquettes from fine ore which does not amount to manufacture. This aspect is not in dispute. The contention of the appellant is that there is no bar on ....

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.... The position is also clear from the CEGAT judgment in case of Gujarat State Fertilizer Co. Ltd. v. CCE - 1995 (80) E.L.T. 812 (Bom. CEGAT) in which the Hon'ble Tribunal dismissed the appeal. "..... in so far as the eligibility of Modvat credit in respect of duty paid on plain or coloured chips brought back and used in the process for obtaining plain or coloured chips holding that there is no manufacture involved and Modvat Scheme cannot apply in such contingency." 2.1. We find- (a) On a reading of the definition of 'Capital Goods' under Cenvat Credit Rules, 2002 it appears to prescribes "Capital Goods" means, - (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, Heading No. ....