2000 (4) TMI 667

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the Commissioner of Central Excise (Appeals) has denied the benefit of Modvat credit to the appellants, who are manufacturers of woollen yarn, on the following items : (1) Extra Equipment, (2) Truing Machine, (3) Machinery for crushing, (4) Damper, (5) Vaccum Cleaner and (6) Pump spares. 2. I have heard both the sides and carefully considered their submissions. My findings are recorded hereun .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... have not substantiated their contention that this item is used for processing or producing goods. Hence I hold that this item is not capital goods and therefore, not entitled to Modvat credit under Rule 57Q. (3) Machinery for Crushing: This machine helps to crush coal for feeding into the steam generated in boiler and steam in turn is used in the dying plant for dying of woollen fibre. Hence it .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... treated as an item used for producing or processing of final products and hence I hold that it is entitled to capital goods credit under Rule 57Q. (5) Vacuum Cleaner : This is used to suck impurities like dust generated during processing of woollen fibre and this plays a crucial role in emergence of dust free fibre and are to be considered as used as processing of woollen. Following the ratio of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X