SIEMENS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) HEARD both sides. There is no dispute that the impugned goods are machinery items, being Bar Code system and parts, which are used for keeping track of raw materials in the appellants' factory. The learned Advocate appearing for the appellants states that the appellants' factory uses numerous items in the production of finished goods, the Bar Code system is used for keeping track of the inventory without which smooth production or manufacture is impossible. He also states that in the case of CCE, Coimbatore v. Jawahar Mills Ltd. , the Hon'ble Supreme Court has held that the expression "Capital goods" appearing in Rule 57Q of the Central Excise Rules, 1944 is to be interpreted liberally in view of the language used. By adopting a liberal approach, it can be said that the Bar Code system is being used in production and manufacture of the finished goods.

(2.) ACCORDINGLY , 1 am of the view that the Modvat credit in respect of the impugned goods cannot be denied. Hence the impugned order is set aside and the appeal is allowed.