ORIENT PAPER MILLS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal is directed against the order -in -appeal dated 30.12.2003 wherein the Modvat credit is denied to the appellants.

(2.) THE relevant facts that arise for consideration are that the appellants availed Modvat credit on Hylok Resins, Reaction Indion, Indion, Indian FFIP as capital goods, after filing proper declaration to the authorities. The appellants were issued a show cause notice for denial of Modvat credit on the ground that these products are chemicals and resins and hence could not be in nature of capital goods or components, spares or parts and accessories. The said show cause notice also sought to deny the Modvat credit on black and white printer used with computer. The adjudicating authority confirmed the demand and also imposed penalty on the appellants, as appeal the appellate authority also upheld the order -in -original.

(3.) HEARD both sides and perused records. I find from the records and submissions that the black and white printer is used along with the computer and falls under chapter sub -heading No. 8471 to CETA, 1985. There is no evidence brought on record to show that this printer was used for or in processing of ultimate final products of the appellants. In the absence of any such evidence, the Modvat credit is not available to the appellants. Hence Modvat credit on the black and white printer is correctly denied to the appellants and the order -in -appeal to this extent is upheld.