NEW ERA INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) Heard both the sides.

(2.) Shri K.K. Anand, ld. Advocate pleaded that the appellants had brought a machine in their factory and the machine was dismantled to know the various parts and components used in that machine and after dismantling and knowing the various parts and components used in that machine, the appellants manufactured similar type of the machines. They have taken Modvat credit on the machine, which was denied by the lower authorities on the ground that it was not used in the manufacture of the goods. The ld. Advocate pleaded that since the appellants had dismantled the machine to know the various parts and components of this machine and with that knowledge, they have manufactured new machines in their factory, therefore, they are eligible for Modvat credit. He relied on the following decisions :

(3.) Shri Vipin Verma, ld. JDR pleaded that the machine, which is dismantled into parts and components is neither used for designing or developing nor it is used for manufacture of any goods. He also stated that the decisions relied upon are not applicable to this case.