2004 (11) TMI 247

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..... Injection Moulding Machine, and used it to produce Plastic Razor Blade handles which they cleared without payment of duty to an another unit of their own who manufactured Shaving Systems. The second unit cleared the final product on payment of duty. The contention of the Department is that the appellants are not entitled to capital goods credit as if manufactured goods on which no duty was paid. .....

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..... ant had taken credit after filing a declaration under Rule 57T and that the Department was aware of the fact that the injection moulding machine was being used only to manufacture razor blade handles, and in any case the appellant was entitled to credit on the capital goods as the final products (Shaving System) were cleared on payment of duty. The ld. Advocate for the appellants relied on the dec .....

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..... ving systems, which are cleared on payment of duty. The Apex Court while interpreting Notification No. 217/86-C.E. held that the final products i.e. Tractors are dutiable and therefore the benefit of Modvat credit cannot be denied. Simply because the intermediate goods did not suffer duty. The ratio of this decision applies to the facts of the present goods. Once we agree that razor handles are in .....

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