2005 (11) TMI 136

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....Member (J)]. - This appeal arises from Order-in-Original No. 4/2003 dated 30-4-2003 passed by the Commissioner of Central Excise, Belgaum. The appellants have been denied the benefit of Modvat credit in respect of capital goods which are used in the manufacture of goods which carries nil rate of duty. The appellants were job workers and had received the items for further manufacturer. The items re....

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....re also utilized subsequently for manufacture of dutiable goods and hence, the view taken by the Commissioner to deny the Modvat credit on capital goods is not in terms of the following rulings. (a)     CCE, Bhopal v. Bhaskar Industries Ltd., reported in 2003 (54) RLT 301 (CEGAT-Del.). (b)     M/s. Rico Auto Industries Limited v. CCE, Delhi reported in....

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....ital goods have been exclusively used for manufacturing the items which are exempted. Furthermore, the appellants have also used the same capital goods for manufacture of dutiable goods. Hence, in light of the cited judgments, the benefit of Modvat credit on the capital goods cannot be denied. The Tribunal's ruling in the case of CCE v. Bhaskar Industries Limited (supra) has upheld the grant of Mo....