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TMI Blog2012 (7) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... ediary products and not the final products" 2. The appellant had purchased one electric 'CNC wire cut electric discharge machine' on 14.3.1995 and had filed a declaration under Rule 57(T)(1) of the Central Excise Rules, 1944 (Rules for short). By order dated 18.5.1999, the Assistant Commissioner held that the excise duty paid on the aforesaid machine cannot be credited in the Modvat account as the said machine was used for manufacture of dyes and tools which were not the final products. The final product of the appellant was stamping and lamination in which these dyes/tools were used. The modvat credit of Rs. 1,30,000/- was directed to be withdrawn and penalty of Rs. 25,000/- was imposed on the assessee. Interest was directed to be charged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise leviable on the final products, or as the case may be, on such capital goods, if such capital goods have been permitted to be cleared under rule 57S, subject to the provisions of this section and the conditions and restrictions as the Central Government may specify in this behalf: Provided that credit of specified duty in respect of any capital goods produced or (a) in a free trade zone and used for the manufacture of final products in any other place in India; or (b) by a hundred per cent export-oriented undertaking or by a unit in an Electronic Hardware Technology Park and used for the manufacture of final products in any place in India, Shall be restricted to the extent of duty which is equal to the additional duty leviable on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d dyes have to be first produced and manufactured as per the needs and requirements of the customer. Then, and thereafter lamination and stamping is possible. The whole process is an integrate one. Production of the dyes or stamps by the machine is covered under Clause (a) of the Explanation. The CNC wire cut electric discharge machine is a tool/ machine used for producing or processing of any good. The last words 'bringing about any change in any substance for the manufacture of final products' is also broad and wide. The machine/tool in question brings about change in substance and this enables production/manufacture of the final product. Without the change. i.e., production of dyes or stamp, the final product cannot be manufactured. Unle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e components, spare parts and accessories of the goods mentioned in clause (a) used for the purposes enumerated therein would also be 'Capital goods' and qualify for Modvat credit entitlement. Clause (c) makes moulds and dies, generating sets and weigh bridges used in the factory of the manufacturers as capital goods and thus qualify for availing Modvat credit. The goods enumerated in clause (c) need not be used for producing the final product or used in the process of any goods for the manufacture of final product or used for bringing about any change in any substance for the manufacture of final product and the only requirement is that the same should be used in the factory of the manufacturer. Thus, it can be seen that the language used ..... X X X X Extracts X X X X X X X X Extracts X X X X
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