KOPRAN LTD. Vs. CCEX

JUDGEMENT

(1.) HEARD both sides and perused the records.

(2.) THE appellants are the manufacturer of P or P Medicaments falling under Chapter 30 of the schedule to the CETA, 1985. The issue involved in the instant appeal is regarding the admissibility of the Modvat credit on E1. Analytical balance and PH meter. The Commissioner (Appeals) has disallowed the Modvat credit on the impugned goods on the ground that these are used in the stage prior to the manufacture of the goods and, therefore, these goods cannot be said to be used in or in relation to the manufacture of the final goods.

(3.) I find that the impugned goods were received vide Bill of Entry dated 28.7.94 and credit was taken in Sept. 1994. I, further, find that E1. Analytical balance is used to weigh analytical quantities very precisely. Similarly, PH meter is used to find out the compliance on noncompliance level of the various raw materials. The items are used in the factory in the process of manufacture as quality control checks of inputs, which are an integral part of the manufacturing process of P or P medicaments, as per FDA regulations. Hence, these are eligible to the Modvat credit under Rule 57Q of the CER, 1944. The credit has been correctly availed by them. While holding so, I place reliance on the following case laws: