COMMISSIONER OF CENTRAL EXCISE Vs. AKSH INDIA LTD.

JUDGEMENT

(1.) IN this appeal filed by the Revenue, the respondents are M/s. Aksh India Ltd. and the matter relates to the eligibility of the water process generator classifiable under Heading No. 84.05 of the Central Excise Tariff to the benefit of Modvat credit under Rule 57Q of the Central Excise Rules. The respondents are engaged in the manufacture of jelly filled optical fibre cables classifiable under Heading No. 85.44 of the Tariff. The Modvat credit was denied by the Asstt. Commissioner on the ground that the functioning of the water process generator was not in the nature of producing/processing of any goods nor did it bring about any change in any substance for the manufacture of the final products. The Commissioner of Central Excise (Appeals), New Delhi, had observed that the Modvat credit was not to be denied with regard to this item.

(2.) I have heard Shri T.A. Arunachalam, JDR, for the appellants/ Revenue and Shri Lachman Dev, Consultant, for the respondents.

(3.) SHRI T.A. Arunachalam, JDR, reiterated the grounds taken by the adjudicating authority in denying the Modvat credit.