1998 (3) TMI 272

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..... . - This is a Stay Application No. E/Stay/252/98 in Appeal No. E/341/98 arising out of the Order-in-Appeal No. 127/97-T, dated 7-10-1997 of the learned Commissioner denying Capital Goods Credit under the Capital Goods Modvat scheme on the baling machine for baling of P.U. Foam, articles of P.U. Foam and scrap thereof which has been denied on the ground that P.U. Foam, i.e. the final product come .....

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..... acture of paper is in the wrapped or packed condition as paper is not normally sold loose. Therefore, wrapping paper is an input in Modvat scheme. Applying the said law, the learned Counsel argued that in their case RG 1 stage is baled quality of foam i.e. after it has been packed, using the machine in question. On a query from the Bench, the learned Counsel did not have the RG 1 register and any .....

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..... at this moment produced the RG 1 record being used in factory. As far as the explanation to Rule 57Q is concerned, I find that if it is factually correct that the RG 1 point is reached only after the baling process is completed, then there is no doubt that the said baling machine would be covered by the expressions "used for producing or processing of any goods" and hence, in that case, the credit .....

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