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TMI Blog2016 (11) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of testing equipment and apparatus. Reliance placed on the decision of the case of OBLUM ELECTRICALS INDUSTRIES PVT. LTD. Versus COMMR. OF C. EX., HYDERABAD [2003 (1) TMI 491 - CEGAT, BANGALORE] The Tribunal consistently held that testing process is vital part of the manufacturing of final product therefore the credit of testing instrument is admissible. As per my above discussion, which is based on judgments as cited above, the appellant is entitle for the Modvat credit under Rule 57Q in respect of testing instrument. The impugned order is set aside and appeal is allowed. - APPEAL NO. E/753/97 - Order No. A/86564/16/SMB - Dated:- 17-3-2016 - Mr Ramesh Nair, Member(Judicial) M/s. Johnson Johnson Ltd Versus Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds is testing instrument and same is used for the testing of raw material and finished goods. By the activity of testing it is not used for producing or processing of any goods or bringing any change in any substance therefore credit is not admissible on the said testing instrument. 5. I have carefully considered the submissions made by Ld. A.R. and perused the record. 6. As per the facts as appearing from the show cause notice as well as Adjudication order, the testing instrument is used for testing of raw material as well as finished goods. The testing of raw material and finished goods is integral part of the manufacturing process of the final product therefore it cannot be said that testing instrument is not used in the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reasons stated above, the appeal is allowed with consequential relief, if any, to the appellants. COMMISSIONER OF C. EX., CHANDIGARH-I Versus CHANAB TEXTILE MILLS [2000 (120) E.L.T. 417 (Tribunal)] 4. The issue relating to the use of certain items in or in relation to the manufacture of the end products is already stattled by the above and many other decisions of the Tribunal and Courts. It is not the case of the appellants that Ld. Commissioner (Appeals) has either misdirected himself by relying on the stated decisions or these decisions are not relevant to the issue under consideration. During the course of the hearing, the ld. DR for the Revenue stated that the cited decisions are not on subject of Modvat credit on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantities. The decision of the Larger Bench of the Tribunal in the case of M/s. Jawahar Mills and Others reported in 1999 (108) E.L.T . 47 in which electrical items have been held to be eligible to capital goods credit will cover the electrical items such as DC and AC motors and DC Board, DE Motor and PC Board, Ramo Unit. As for testing equipments the Tribunal has held in the case of M/s. Geep Industrial Syndicate Ltd. reported in 1996 (88) E.L.T. 753 that testing equipments are capital goods under Rule 57Q and hence entitled to Modvat credit. Therefore, all the items in dispute in the present appeal are to be treated as capital goods entitled to credit and, therefore, we set aside the impugned order and allow the appeal. INDIAN S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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