9911796707
TMI Blog1998 (7) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... . The issue involved herein is whether the benefit of Modvat credit on welding electrodes used in manufacture of the capital goods inside the factory is permissible under Rule 57D(2) or not. The respondents herein had made a declaration for the said goods under Rule 57G declaring the aforesaid purpose of the inputs. 2. A show cause notice was, however, issued on 3-4-1996 that the Modvat credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng electrodes are used in manufacture of the goods as well as manufacture of plant and machine. Hence this appeal by the Revenue. 4. Learned JDR, Shri T.A. Arunachalam submits that welding electrodes cannot be said to have been used in or in relation to manufacture of final product i.e. paper manufactured by the respondents. Revenue has stated that the respondents have used welding electrodes fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f excise leviable thereon or chargeable to nil rate of duty . He submits it is not denied by the Revenue that the welding electrodes had been used in fabrication of the recausticising plant. In the view of the foregoing, the benefit of Modvat credit of duty paid on welding electrodes cannot be denied as an input. 5.2 In his rejoinder learned JDR, Shri T.A. Arunachalam submits that welding electr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 57D(2) as extracted above will become superfluous. Such a view, therefore, cannot be taken. Even though welding electrodes cannot be said to have been used directly in manufacture of the final product i.e. paper but by virtue of this Rule 57D(2) the inputs become admissible to Modvat credit. The modvat credit would be admissible in respect of inputs used in manufacture of capital goods used w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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