DHAMPUR SUGAR MILLS LIMITED Vs. COMMISSIONER CENTRAL EXCISE

JUDGEMENT

(1.) Heard learned counsel for parties and perused the record.

(2.) This appeal under Section 35G of Central Excise Act, 1944 (hereinafter referred to as 'Act, 1944'), has arisen from judgment and order dated 11th September, 2007, passed by Custom Excise and Service Tax Appellate Tribunal, New Delhi (hereinafter referred to as 'Tribunal'), in Appeal No. E/3365/2005-SM(BR), holding that "Welding Electrodes" are not entitled for MODVAT Credit either as 'Capital Goods' or 'Inputs'.

(3.) Appellant sugar mill is engaged in manufacture and sale of sugar and molasses. It also has a chemical division producing chemicals therein. There is further division wherein appellant is manufacturing paper and paper boards. For the period January, 2001 to March, 2001; May, 2001 to June, 2001 and July, 2001 to December, 2001, it claimed MODVAT credit on use of 'Welding Electrodes'. Assistant commissioner, Moradabad issued show cause notice dated 3rd January, 2002 stating that MODVAT credit availed by appellant during aforesaid period was not correct as it was not entitled for such credit on "Welding Electrodes"