2011 (5) TMI 126 - AT - Central Excise

Extension of MODVAT credit - Tribunal s Final Order No.919-927/03 dt. 4.11.03 in the case of Sudarshan Spinning Mills Ltd. & others holding that MODVAT credit of duty paid on capital goods used in the manufacture of carded/combed cotton which arises during the course of manufacture of final product viz. cotton yarn is admissible even though such the goods were received in the factory prior to 21.10.94 - Hence, uphold the impugned order and reject the appeal of revenue.

Summary

The Appellate Tribunal CESTAT, Chennai upheld the extension of MODVAT credit on preparatory machine used in the manufacture of cotton yarn. The decision was based on a previous order regarding duty paid on capital goods used in manufacturing cotton yarn. The appeal by the Revenue was rejected.