CCE, CHANDIGARH-II Vs. BIRLA VXL LTD.

JUDGEMENT

(1.) THESE are five appeals filed by the Revenue being aggrieved with the common order -in -appeal no. 750 -751/CE/CHD/2000 dated 17.4.2000 passed by the Commissioner of Central Excise, Chandigarh. The issue for consideration before the appellate authority was the admissibility of modvat credit under Rule 57 -Q of the Central Excise Rules with regard to the machines called Two for One (TFO) Yarn Twisting Machine. Following the Tribunal's decision vide order No. A/1140 -1141/99 -NB (DB) dated 3.12.1999 with regard to the same respondents for another period, he allowed the appeals filed by the respondents, M/s Birla VXL Ltd.

(2.) WHEN the matter was called, no one appeared for the respondents. A request was made for adjournment. The matter was fixed for today on 22.2.2001 in the presence of the respondents; counsel. We do not find any justification for adjournment in this appeal. The request for adjournment is rejected.

(3.) WE have heard Shri S.K. Das, DR, and have gone through the facts on record. We find that the learned Commissioner of Central Excise (Appeals) in remand proceedings had followed the Tribunals's order in the respondents own case with regard to the same machine and same facts. The Tribunal has taken a view that the process of conversion of single ply yarn to multifold yarn was a process incidental or ancillary to the completion of the manufactured product and it was not correct to say that the process carried out by the TFO machine did not amount to manufacture. The Tribunal had rejected the appeals by the Revenue.