2005 (5) TMI 490

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..... xamining the records and hearing both sides, I find that this appeal involves the short question whether Telephone Cable falling under Heading No. 85.44 of the CETA Schedule, used by the appellants within their factory during Mar.'98, was eligible for Modvat credit under Rule 57Q. Both the authorities below disallowed the credit of Rs. 3,317/- to the party on the ground that the Telephone Cable wa .....

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..... ring the material period. This rule, which is seen reproduced in the impugned order, reads as under : "Rule 57Q. Applicability. - (1) The provisions of this section shall apply to goods (hereafter in this Section, referred to as the "final products") described in column (3) of the table given below and to the goods (hereafter, in this section, referred to as "Capital Goods") described in the corr .....

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..... of Modvat credit on any capital goods, the manufacturer of final products should only show that the capital goods is one specified in Column (2) of the Table annexed to sub-rule (1) of the Rule and was used in his factory. Nothing contained in the above rule qualified "use" of the capital goods in anyway. Therefore, the Revenue's contention that the telephone cable should have been used for the m .....

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