BALMER LAWRIE-VAN LEER LTD. Vs. CCE

JUDGEMENT

(1.) None appeared for the appellants. Heard Shri A.K. Saxena, learned J.D.R. In this case, the appellants have been denied modvat credit of Rs. 16,830/ - on the impugned goods which are used as spare parts fitted to the manufacturing machine for punching a mark on the products. The appellants have claimed that such punching is essential to identify the product and is part of the manufacturing proce ss. The Commissioner (Appeals) has denied the credit on the ground that the machinery can function without the impugned part and that putting the mark is not part of producing or processing of goods or bringing out any change in the substance for the manufacture of final product.

(2.) After carefully considering the provision in Rule 57Q and the submissions made by learned J.D.R., I am of the view that the impugned goods used for putting a mark on the goods is an essential part of the manufacturing process and completion of the finished goods as a marketable product. Accordingly, I hold that the appellants are entitled to the credit on the said goods. The impugned order including the penalty of Rs. 5,000/ - is set aside and the appeal is allowed with consequential benefit. (Pronounced in court on 8.12.2003).