CCE Vs. WHIRLPOOL INDIA LTD.

JUDGEMENT

(1.) THE respondents were manufacturing washing machines and availing Modvat credit of duty on their capital goods. Certain parts of washing machine used to be got manufactured through job workers, for which the respondents supplied the necessary moulds under Rule 57S(8). In respect of the moulds so supplied to the job worker, the respondents availed Modvat credit. The Department took the view that they were not eligible for the credit as the party who manufactured the machine parts was not to be treated as job worker on account of having used their own raw material for such manufacture. The original authority upheld this view and disallowed the credit. But the first appellate authority set aside the order of the lower authority and allowed the credit on moulds to the respondents. Hence this appeal of the Department.

(2.) HEARD both sides. Ld. SDR reiterated the grounds of the appeal. Ld. Advocate defended the order of the Commissioner (Appeals) on the strength of the Tribunals decision in Whirlpool of India Ltd. v. Commissioner of Central Excise, Tricky 2003 (59) RLT 879 (CESTAT -Del.) : 2004 (113) ECR 284 (T).