9911796707
TMI Blog2009 (4) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... n the market and is not a commodity which is known in the trade, decision against the revenue and the civil miscellaneous appeal is dismissed [Modi Carpets Limited (1994 - TMI - 44497 - HIGH COURT OF JUDICATURE AT DELHI)] - 3688 of 2005 - - - Dated:- 28-4-2009 - Prabha Sridevan and T.S. Sivagnanam , JJ. REPRESENTED BY : Shri P. Mahadevan, SCGSC, for the Appellant. Shri P.J. Rishikesh, Counsel, for the Respondent. [Judgment per : Prabha Sridevan, J.]. In this civil miscellaneous appeal, the following substantial question of law was framed for consideration :- Whether the CESTAT is correct in allowing Modvat credit of duty paid on capital goods/spares namely carding and combing machines producing final products namely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit should not be denied on the capital goods used in manufacture of intermediate product exempt from payment of duty which are used captively in the manufacture of finished goods chargeable to duty held that MODVAT credit of duty paid on the capital goods cannot be denied. 4. We find that in a writ petition filed before the Delhi High Court in Modi Carpets Limited v. Union of India [1997 (91) E.L.T. 285], the Division Bench had considered the nature of Sliver on the basis of expert reports and held as follows :- Sliver obtained in the Petitioner s factory as described above cannot be brought and sold in the market and is not a commodity which is know in the trade. 5. The Supreme Court declined to grant leave [1996 (81) E.L.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Sliver and we think it might be useful to extract this :- ...........This sliver is very brittle in nature and is liable to fall apart by handling. It also get entangled if it is not handled gently, thus becoming unsuitable for spinning. If the Sliver falls apart or gets entangled, it becomes unfit for spinning and cannot be fed into ring frames for spinning. Moreover, it is important to maintain humidity condition in the spinning Section and the Sliver is not allowed to dry. If the moisture content is lost, Sliver dries and the fibre strands fall apart and collapse and become unfit for spinning. Sliver cannot be packed and transported in view of its non-cohesive and brittle nature. Any form of packing entailing even the slightest pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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