2008 (3) TMI 677 - HC - Central Excise

CENVAT/MODVAT credit - Whether the Modvat credit is admissible on components of Diesel Generating Power Plant (DGPP) installed in the factory when the Diesel Generating Power Plants are exempted from payment of duty? - Held that - It is not in dispute that the Diesel Generating Power Plants on which Modvat credit is availed, have been used in the manufacture of final product and on which excise duty has been paid - reliance placed in the case of ESCORTS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, DELHI 2004 (8) TMI 106 - SUPREME COURT OF INDIA , where it was held that the Appellants will be entitled to Modvat credit on duties paid for the inputs used for manufacture of parts, so long as the parts are used in the manufacture of tractors on which duty is paid - credit allowed - appeal dismissed - decided against Revenue.

Summary

The Bombay High Court dismissed the application regarding the admissibility of Modvat credit on components of Diesel Generating Power Plant (DGPP) installed in a factory. The decision was based on the judgment of the Apex Court in the case of Escorts Ltd. v/s Commissioner of Central Excise, Delhi.