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TMI Blog2003 (11) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... that this machine is used only for the maintenance of the carding machine. It was also the grievance of the Revenue about the usage of full width grinding roller, carding accessories and rectifying bed as it was clear that these impugned items were not used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products and as such the impugned items were not covered under the definition of capital goods under Rule 57Q whereas the Commissioner (Appeals) has held that the above machines are entitled to capital goods credit as the same have been used in or in relation to the manufacture of final product. 3. Heard ld. DR Shri C. Mani who during the hearing held on 26-9-2003 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y both sides and since in the matter of CCE v. Sudarshanam Spinning Mills Ltd. Ors. we have vide Order Nos. 919 to 927/2003, dated 4-11-2003 [2004 (167) E.L.T. 210 (T)] have held that Modvat credit is available on capital goods which are used in the manufacture of combed/cotton yarn known as sliver which is ultimately used in the manufacture of cotton yarn which is their final product and on which duty is paid. Para 8 of this Bench order is extracted herein below : 8. We have carefully considered the submissions made by both the sides. The only issue that arises for our determination in all these appeals is whether Modvat credit of duty paid on the capital goods/inputs which are used for manufacture of the final product viz. cotton yar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eny benefit of Modvat credit on the capital goods, provided the final product is dutiable. In the instant case, admittedly the final products viz. cotton yarn is chargeable to duty. In the background of the fact that intermediate products did emerge and emergence of such intermediate product cannot vary or deny the benefit of credit in respect of the capital goods, as provided for under Rule 57R(2) just because such intermediate products have been included on a later date, cannot lead to a conclusion that prior to the date of inclusion, the benefit of credit cannot be given. So far as the marketability of the intermediate product in question is concerned, it is now well settled that the goods in question are not marketable. Further the Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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