DHAMPUR SUGAR MILLS LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides. In this case the benefit of modvat credit in respect of wire mesh was denied as inputs and credit in respect of Catling Knives, Top Slitter Knives, Cross cutting knives was denied as capital goods during the period December, 1995 to February, 1996.

(2.) THE appellants are engaged in the manufacture of Straw board. The benefit is denied on the ground that benefit is not admissible, as inputs and other items are not covered under the scope of capital goods.

(3.) IN respect of capital goods, the contention is that goods are used as parts of machinery. The knives are used with slitter machine. Therefore, the appellants are entitled for credit in respect of parts and accessories of the specified goods of plant, machinery and as per the definition of capital goods provided under Rule 57-Q of Central Excise Act. The appellants also relied upon the Board circular dated 2.12.1996 whereas it has been clarified that parts of machines are entitled for credit. The revenue relied upon the finding of the lower authorities whereby the credit was denied.