9911796707
TMI Blog1998 (1) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... issue involved is with respect to the eligibility of Modvat credit on the airconditioners. The airconditioner was used for the production of the capital goods i.e. medicines. The lower appellate authority granted the benefit of Modvat credit under Rule 57-Q, following the decision of M.M. Forgings. 2. The learned JDR, Shri S. Murugandy, stated that the issue involved in these 3 appeals are cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dealt with and on merits the matter should be decided. 4. I have considered the submissions of both the sides. I find that the issue is squarely covered by the decision of this Bench in the case cited by the learned JDR. In the case of Shanmugaraja Spinning Mills, the Tribunal held that the production process could mean physical processing of the goods and the capital goods must have an access ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of this case. The plea of the learned representative of the respondent is that the drug could not be manufactured unless the Air- conditioner was fitted. This plea may be relevant so far as the manufacturing process of the respondents products are concerned but that by itself is not sufficient reason to grant the benefit of Modvat credit as the same is available only on the satisfaction of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. 7. Since there are 2 decisions passed by the Tribunal, sitting as a Single Member, I follow these decisions and allow the appeals of the revenue and set aside the orders of the lower authority. 8. So far as the penalty is concerned, the penalty imposed is Rs. 25,000/- in A. No. E/716/97 and Rs. 1,000/- in A. No. E/715/97. In the facts and circumstances of the case, the penalty of Rs. 25,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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