J.M. INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The appellants filed this appeal against the Order -in -Appeal passed by the Commissioner (Appeals).

(2.) The appellant is engaged in the activity of breaking up of ships and made import of a ships. The ships also contained in addition to fuel and oil required for running the ship's engine, fuel and lubricating and other stores for consumption by the crew.

(3.) Before the ship is broken up, the fuel and stores are removed on payment of appropriate duty of customs including additional duty of customs. The issue involved in this appeal is whether the appellant could take such duty as Modvat credit to be used towards payment of duty on goods and materials obtained by breaking up of ship. In the impugned order, the Commissioner (Appeals) held that the appellants are not entitled for such credit.