2005 (3) TMI 554

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..... ard both the sides. 2. Shri K.K. Anand, ld. Advocate pleaded that the appellants had brought a machine in their factory and the machine was dismantled to know the various parts and components used in that machine and after dismantling and knowing the various parts and components used in that machine, the appellants manufactured similar type of the machines. They have taken Modvat credit on the m .....

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..... ed in the first instance. (2) CCE, Chandigarh v. Steel Strips Ltd. [2000 (116) E.L.T. 49 (Tribunal)] wherein it was held that computer hardware installed with Baird Direct Reading Vacuum Emission Spectrometer for analysing report of sample testing of raw material being used in manufacturing process eligible to benefit of Modvat credit in terms of Rule 57Q(1) of Central Excise Rules, 1944. .....

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..... er Rule 57Q is applicable on the capital goods used for manufacture of specified goods. Since the machine was neither used for designing or developing of any goods nor it is used for manufacture of any goods, therefore, the credit was correctly denied to them by the lower authorities. However, considering the facts and circumstances of the case, the penalty imposed on the appellants is reduced to .....

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