(1.) This appeal of the Revenue is against grant, by the lower appellate authority, of Modvat credit of the duty paid on repair charges in relation to a boiler. The assessee, who was engaged in the manufacture of Denatured Spirit, sent an old boiler (capital goods) out of their factory to be repaired by a job worker and the latter repaired it and sent it back to the assessee on payment of duty on the job work charges. The assessee took Modvat credit of this duty in their RG 23C Part -II under Rule 57Q. The department took the view that any duty paid on charges of repairs of capital goods outside the factory of production of final products was not available under Rule 57Q to the manufacturer of such final products. Accordingly, a show cause notice was issued to the party. The original authority upheld the department's view. But the first appellate authority did not accept that view. Hence this appeal of the Revenue.
(2.) I have not come across any substantiation of the Revenue's point of view in this appeal memorandum except the following statement : -
(3.) On the other hand, learned Counsel for the respondents has been able to justify the order of the Commissioner (Appeals) on the strength of a decision of this Bench vide Final Order No. 858/2004, dated 8 -10 -2004 in Appeal No. E/908/2004 (Lakshmi Machine Works Ltd. v. CCE, Coimbatore).