1998 (1) TMI 200

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..... e appellant filed this appeal against the order-in-appeal dated 30-10-1996 passed by the Commissioner of Central Excise (Appeals), Allahabad whereby the benefit of Modvat credit in respect of transformers as a capital goods is denied to the appellants. 2. Ld. Counsel appearing on behalf of the appellant submits that appellants are engaged in manufacture of MS ingots runners and razors, MS ro .....

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..... lak, appearing on behalf of the respondent Revenue submits that the transformers are only used for transmission of electric supply down from low tension and therefore it is not used in the process of manufacture of final product. He relied upon the decision of the Tribunal in the case of J.K. Pharma Chemicals v. CCE reported in 1997 (72) ECR 423 (Tribunal) = 1997 (21) RLT 868. 4. Heard both .....

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..... regulate the electric energy which is required for melting the scrap. The Tribunal in the case of CCE v. Indian Rayons Ltd. held that where the transformer is a part of the machinery and is an integral part of the machinery such transformers are eligible for benefit of Modvat credit. A similar view has been taken in the case of CCE v. Navbharat Paper Mills reported in 1996 (86) E.L.T. 501. Respect .....

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