MUKAND LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both sides. The Modvat credit has been denied in respect of Saw blades used for drawing samples before blooms are taken for further processing. The reason for such denial is that such blades are not directly used for manufacturing of final products. However, the phrase 'direct use' does not appear anywhere in Rule 57Q. In view of the fact that testing of the raw material is part of the manufacturing process which is necessary to determine its suitability for further processing, the appellants cannot be denied credit. Accordingly, I set aside the impugned order and allow the appeal.