COMMISSIONER OF CENTRAL EXCISE Vs. KESAR ENTERPRISES LTD.

JUDGEMENT

(1.) IN this appeal, the issue relates to denial of the modvat credit to the respondents on the Front End Loader.

(2.) WE have heard both the sides and gone through the record.

(3.) WE find that the respondents are engaged in the manufacture of sugar and molasses. The Modvat credit on the front end loaders, has been sought to be denied to them, by the Revenue, on the ground that it cannot be termed as capital goods under clause (a) of Rule 57Q. The adjudicating authority, however, accepted this plea of the Revenue and disallowed the Modvat credit of the disputed amount. The Commissioner (Appeals) has reversed that order by holding these goods as capital goods.