2006 (12) TMI 563 - AT - Central Excise

Summary

Issues involved: Modvat credit denial based on machine/equipment usage in manufacturing of sugar plant at factory site.

Upon hearing both sides, the Appellate Tribunal CESTAT MUMBAI, comprising Ms. Jyoti Balasundaram, Vice-President and Shri K.K. Agarwal, Member (T), addressed the denial of Modvat credit to the assessees due to the usage of machines/equipment by manufacturers in the manufacturing of sugar plant at the factory site of the assessees. The issue was settled in favor of the assessees based on a series of Tribunal decisions, including Kranti SSK Ltd. v. CCE, Pune-I and Padamshree Dr. D.Y. Patil SSK Ltd. v. CCE, Pune, which were subsequently followed in the case of Rajarambapu Patil SSK Ltd. v. CCE, Pune-II. Following the ratio of these decisions, the Tribunal held that the appellants were entitled to credit of the amounts in question, set aside the impugned orders, and allowed the appeals.