M/S FLEX ENGINEERING LIMITED versus COMMISSIONER OF CENTRAL EXCISE, U.P

M/S FLEX ENGINEERING LIMITED versus COMMISSIONER OF CENTRAL EXCISE, U.P

Testing of tailor-made packaging machines is integrally connected with manufacture; materials used for such testing are inputs 'in relation to' manufacture and entitled to Modvat credit under Rule 57-A of Central Excise Rules, 1944.

Parties
Appellant: M/S Flex Engineering Limited; Respondent: Commissioner of Central Excise, U.P.
Jurisdiction
India
Judgment Date
13 January 2012
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeals allowed
Legal Topics
Modvat Credit, Inputs in Manufacture, Marketability, Manufacturing Process
Taxation Central Excise Modvat Credit Inputs in Manufacture Marketability Manufacturing Process

Case Brief

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Parties

M/S Flex Engineering Limited

Appellant

Commissioner of Central Excise, U.P.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Eligibility of Modvat credit for materials used in testing tailor-made packaging machines
  2. 2 Whether testing is 'in relation to manufacture' under Rule 57-A of Central Excise Rules, 1944

Ratio Decidendi

Testing of tailor-made packaging machines is integrally connected with manufacture; materials used for such testing are inputs 'in relation to' manufacture and entitled to Modvat credit under Rule 57-A of Central Excise Rules, 1944.

Court Disposition

Appeals allowed

Orders

  • Impugned orders of the High Court are set aside.
  • Modvat credit is admissible for materials used in testing tailored F&S machines under Rule 57-A.