9911796707
TMI Blog2001 (11) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... ng about any change in any substance. He also came to a conclusion that the said machine is not used directly in relation to manufacture of the intermediary or final product and therefore its use is neither incidental or ancillary to the production of goods. He therefore denied the Modvat credit under Rule 57Q. 3. The question of denial of Modvat credit on capital goods under Rule 57Q has finally been settled by the Supreme Court in the case of Jawahar Mills [2001 (132) E.L.T. 3 (S.C.)], wherein they have upheld the Revenue's plea that credit cannot be availed for items which are alleged found, to be not used directly or indirectly in relation to the manufacture of the final or intermediary products. 4. The appellants submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Machine render good assistance in manufacturing process. Appellants have exhibited sample-checking report obtained from this machine, which has not received attention which it ought to be. Merely because appellants made a statement that previously such checking were done manually no stretch of imagination could be made as if such machine is not used in the manufacturing process. Appellants submit that they are under the spade work for obtaining ISO 9002 Certificate for which stringent accuracy has to be maintained regarding the standard for which complying with specified measurements is the basic requirement." 5. The appellants also relied on the decision in the case of Rajasthan State Chemical Works [1991 (55) E.L.T. 444] that Quality ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g dimensions and Assembly dimensions of Main Nut, Box and Rocker Shaft are also periodically verified once jigs and fixtures are set in the initial - middle and final stream of production. Hence no stretch of imagination can be made holding that this machine is not used in the manufacturing process." In spite of our mention about the usage of subject machine in production, the Commissioner (Appeals) in his Order-in-Appeal (Para No. 4) has erroneously recorded that appellants have admitted the fact of measuring machine not used in or in relation to manufacture of their finished goods, which is totally misleading and not a fact." 7. We have considered the submissions and find that no evidence has been produced to rebut the finding of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
