1998 (8) TMI 362 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, Mumbai ruled in favor of the appellant, who manufactures rock roller bits under Chapter 82 of the Central Excise Tariff Act. The tribunal allowed the Modvat credit for forging test pieces used in the manufacturing process, overturning the demand imposed by the Asstt. Commissioner. The forging test pieces were deemed essential for in-process testing and were considered to be "used in relation to the manufacture" of the final product. The appeal was allowed based on this reasoning.