2015 (11) TMI 597

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..... sh Ostwal, Ld. Counsel for the appellant submits that appellant is a manufacturer of various Aluminium products for manufacturing the same, charging machine is used for transportation aluminium coils from charging section and loading inside the annealing furnace and take it out from the furnace. Thereafter annealing aluminium coils is part of the process for manufacture of aluminium products. It is his submission that the process of charging and annealing of aluminium coils which is carried out by the help of charging machines is a part and parcel of manufacturing process of aluminium products therefore the charging machines is directly used in relation to the manufacture of final product. He placed reliance on following judgments:   .....

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..... ioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that as regard lathe machines, in the judgments relied upon by the Ld. Counsel in the case of NRB Bearings Ltd(supra) lathe machine in that case was used for trimming, boring and threading various components which is manufacturing process of the assessee whereas in the present case lathe machine is not used in the process of manufacture but it is used for maintenance of certain parts used for manufacturing process therefore the judgment of NRB Bearings Ltd is not applicable. hence the credit is not admissible on lathe machine. As regard charging machine, he submits that the handling of coils with the help of charging machine is not ancil .....

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..... to defective after use and required regular maintenance for which lathe machine is very essential. Since roller were used directly in final product, time to time maintenance done by lathe machine is also integral part of the entire manufacturing process. As regard Ld. A.Rs submission that in the case of NRB Bearings Ltd the use of lathe machine is directly in the process of manufacture of final product whereas in the present case, it is use for maintenance of rollers. I agree with the Ld. A.R. for the reason that in case of NRB Bearings Ltd drilling machines use for maintenance work which has held as modvat credit under rule. In view of the said judgment even machine used in the work shop for maintenance are eligible for the modvat credit. .....

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