Per K.S. Venkataramani :

This appeal is directed against the order dated 12/13.7.95 passed by the Commissioner of Central Excise and Customs, Jaipur by which he has disallowed the modvat credit on capital goods Rs. 32,001,151.80 under Rule 57 U of the Central Excise Rules, 1944 and has also imposed penalty of Rs. one lakh on the appellants, herein. The appellants manufacture polyester staple fiber and nylon filament yarn and polyester filament yarn. They submitted a declaration under Rule 57 T of Central Excise Rule. The department found that the appellants had taken the above said modvat credit for the period from April, 1994 to June, 1994 on the electrical goods of Chapter 85, namely, load power supply, panels, cables, junction box, transformers, printed circuits and other items or chapter 84 and of Chapter 90 of Central Excise Tariff Act, 1985, namely, master cord station monitor controller I/P Assessembly controller resistance, I/P cord as mentioned in the annexure to the show cause notice, which were not used for producing or processing of any goods or for bringing about change in any substance for the manufacture of the final product, namely, polyester fibre. The departme