HINDUSTAN ZINC LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) In this appeal which has been filed against the impugned order -in -appeal, the issue relates to the denial of Modvat credit to the appellants on the goods used in the manufacture of capital goods which in terms are used for the manufacture of the final product i.e. Zinc. This issue in my view stands answered in favour of the appellants from the definition of the 'inputs' read with Explanation II, detailed in Rule 2(g) of the Cenvat Credit Rules, 2002 which reads as under:

(2.) In view of this definition of the inputs, the appellants are entitled to Cenvat credit on the goods. Therefore, the impugned order is set aside and appeal of the appellants is allowed with consequential relief as per law.