PEPSI FOODS (P) LTD. Vs. CCE

JUDGEMENT

(1.) In this appeal which has been filed against the impugned order by the appellants issue relates to denial of modvat credit on the capital goods.

(2.) The facts are not much in dispute. The capital goods were imported by M/s. Frito Lay India and endorsement in the bill of entry was made in favour of the appellants who are engaged in the manufacture of Potato Chips, Namkeen and worked as a job worker for M/s. Frito Lay India during the period in question i.e. 1.9.98 to 31.3.99. The modvat credit has been denied to the appellants on capital goods on the ground of being not owner of the goods. But on this ground, credit cannot be denied in view of the law laid down in Sharda Motors Industries Ltd. v. CCE, Chennai 2002 (150) ELT 759 and His Automotives Ltd. v. CCE Chennai 2004 (163) ELT 116 wherein it has been observed that ownership of goods is no criteria for denying the modvat credit in view of Board Circular No. 2638/89 -CX dated 1.3.99.

(3.) Therefore, the impugned order cannot be sustained and the same is set aside. The appeal of the appellants is allowed with consequential relief, as per law.