CCE Vs. EID PARRY (I) LTD.

JUDGEMENT

(1.) This appeal of the Revenue is against grant, by the lower appellate authority, of Modvat credit to the respondents to the extent of Rs. 1,79,076. Out of this credit, an amount of Rs. 1,31,165 is the credit allowed on original copies of invoices and the balance is the credit allowed in respect of a gear box which was used in a conveyor system used for removal of 'bagasse' from the place of its formation to that of its storage within the sugar factory. Both these credits relate to the period May to September 1994.

(2.) Ld. DR reiterates the grounds of the appeal. He submits that the credit of Rs. 1,31465 was taken by the assessee on the basis of original copies of invoices without prior permission from the Assistant Commissioner and, therefore, they were not entitled to the credit as held by the Tribunal's Larger Bench in CCE v. Avis Electronics Pvt. Ltd., 2000 (69) ECC 272 (LB) : 2000 (117) ELT 571 (Tri.LB).

(3.) Ld. Counsel for the respondents, on the other hand, submits that the grounds raised by the appellant against grant of Modvat credit on gear box are untenable inasmuch as removal of waste materials like 'bagasse' arising out of the process of manufacture of sugar [final product] within the factory is, by itself, a part of the said process and, therefore, the gearbox should appropriately be considered to have been used for the manufacture of the final product.