Full Judgment
2. M/s Flex Industries Ltd. are manufacturers of Plastic film falling under chapter heading 3920.31. Credit has been denied by them on items such as material handling equipments, Lightning Arrester, G.I. Steel Structure, G.I. Steel Rods on the ground that these items are not covered by the definition of capital goods under Rule 57Q.3. M/s Flex Engineering Ltd are the manufacturers of various types of packaging machines etc. Modvat credit has been disallowed to them on items such as electric fans, Shapes and Sections, Copper Sheets, Industrial wet/Dry vacuum cleaner, EPS Sheets etc. on the ground that these are not covered within the definition of capital goods under Rule 57Q of the Central Excise Rules. In appeal No. E/3046 credit of Rs. 1,50,856/- has also been denied on lifting has also been denied - denial is on the ground that duty paying documents are not in the name of the appellants.
4. On hearing both sides, I note that most of the items have already been held up to be eligible to modvat credit as capital goods. Ld. C.A.has cited several decisions before me. He also submitted that invoice of lifting machines clearly show that the goods were meant for the appellants, although there are marked to M/s Bharat Bijlee, as the invoice show that it is care of the appellant.
5. However, there is dispute regarding use of nature of some of these items and further since there is no finding by the adjudicating authority specifically on some of the items and further noting that impugned orders in all the three cases do not deal in detail about all the itmes in dispute. I accept the plea of ld. DR for remand of the case.
6. (sic) therefore, set aside the impugned orders and (sic) Commissioner for fresh decision on each and every disputed item in accordance with law. He shall pass fresh orders after extending a reasonable opportunity to the appellants and being heard in their defence.