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TMI Blog2007 (5) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... of Modvat credit on Polycarbonate Sheets which were used for carrying various processed items within the factory. 2. Considered the submissions made by both sides and perused the records. The appellants state Polycarbonate Sheets are used by them in the production shop floor on a mobile conveyer for collecting and accumulating the unwrapped chocolate coated wafer bars at the end of the moulding (bar forming) machine line. These are then further used for transporting transferring these semi-finished (unwrapped) bars to the wrapping machine where the same are wrapped before being finally packed as fully finished goods. They are essential for the manufacture of their chocolates and are therefore used for producing or processing their ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cheran Spinners as reported in 2004 (168) E.L.T. 174 (Tri. - Chennai). I may read the Order: "I have considered the submissions made by both the sides and gone through the case records and perused the various decisions cited. I observe that the benefit of Modvat credit in respect of "Plastic crates" has been denied to the assessee on the ground that the item does not figure in the items listed under Rule 57Q at the relevant time. The nature of the item and the use to which it is put by the assessee is not disputed by the revenue. The Commissioner (Appeals) has noted that the item is in the form of material handing equipment which plays the role of carrying the intermediate semi finished products for the next manufacturing activity. The c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... © for availing Modvat as capital goods need not be used in the manufacture of final product, the only requirement is that they should be used in the factory of production. In the case of Parle Beverages Ltd. v. CCE reported in 2000 (124) E.L.T. 803 (T) the Hon'ble Tribunal has held that the plastic crates used for transporting the bottles of aerated waters are eligible for Modvat credit. So the appellants' case is covered by the above laws". I observe that in the present case, Plastic crate is not one of the items specified under Rule 57Q as capital goods. What the Hon'ble Supreme Court in the case of Jawahar Mills (Supra) has held was that the goods specified under explanation 1© to Rule 57Q need not be used in the manufacture of fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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