BALLARPUR INDUSTRIES Vs. CCE, NAGPUR

JUDGEMENT

(1.) THE above appeal arises out of the order of the Commissioner of Central Excise, who has denied modvat credit on grinding wheels used by the appellants in the manufacture of their final products, viz., paper and paper products. The ground for denial is that the items are in the nature of parts for maintenance of machine, which is an activity not having any direct nexus with the processing of the goods. On this basis he held that grinding wheels do not fall with the definition of the capital goods under Rule 57Q and disallowed credit of Rs. 8062/ -. None appeared for the appellant in spite of notice and hence, I have heard the learned DR and perused the records.