MARIS SPINNERS LTD. Vs. CCE

JUDGEMENT

(1.) THIS appeal filed by the appellants is directed against the order in Appeal No. 202/2003 (SCN) TRY -II dated 5.5.2003 passed by the Commissioner of Central Excise (Appeals) -II (Trichy) by which the Commissioner has disposed of the appeal filed by the appellants before him by modifying the order of the original authority. The brief facts of the case are that the appellants are engaged in the manufacture of cotton yarn falling under Chapter 52 of the CETA 1985. They have availed benefit of Modvat Credit in respect of various capital goods under Rule 57Q. The original authority disallowed credit in respect of the following items: - -

(2.) ON appeal before the Commissioner (Appeals), the Commissioner (appeals) allowed benefit in respect of all the items except the following: - -

(3.) HEARD the learned JDR who defended the view taken by the Commissioner (Appeals). I have considered the submissions made by both the sides. I observe that the authorities below have not disputed about the use of above mentioned items for manufacture of the specified goods in the factory of production. The only ground on which the benefit has been denied is that the appellants have not placed any evidence that these are pollution control equipments. When the use of the items in question has not been disputed and when the evidence clearly shows that these items were essential for the manufacture of the specified goods, and going by the ratio of the judgment of the Hon'ble Supreme Court in the case of CCE v. Jawahar Mills (supra), wherein it is clearly held that the goods specified in Explanation 1(c) for availing Modvat Credit as capital goods need not be used in the manufacture of the final product and the only requirement is that they should be used in the factory of production. I am of the considered opinion that the items in question are eligible for the benefit of Modvat Credit in terms of Rule 57Q. I therefore, do not find any material to uphold the impugned order and set aside the same and allow the appeal with consequential relief if any.