9911796707
TMI Blog2002 (1) TMI 1122X X X X Extracts X X X X X X X X Extracts X X X X ..... r dispensing with the condition of pre-deposit of duty amount of Rs. 5,61,407.57 and penalty of Rs. 5,000/-, I take up the appeal itself with the consent of both the sides. 2. The above amount of duty has been confirmed against the appellants by denying them the benefit of Modvat credit in respect of capital goods received in their factory in the year 1994 for the initial setting up of the facto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing for the appellants, submits that the authorities below have wrongly relied upon the Board s Circular No. 88/88/94-CX., dated 26-12-94 inasmuch as the said circular only debars the utilisation of credit. In any case, the entire exercise is revenue neutral inasmuch as the availed credit account becomes admissible to them on installation of the capital goods in their factory. He also refers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the said capital goods. 4. Shri A.K. Mondal, ld. JDR appearing for the Revenue strongly relies upon the Board s Circular referred supra. He submits that in terms of provisions of Rule 57Q, the appellant was entitled to take credit only after installation of the machineries. They have taken credit in the year 1994 when the machinery was put to use in the year 2000, they have definitely contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any case, it is not disputed that though the credit was entered into records, the same was lying un-utilised till 2000 and the same was used only after the production of the final product in the appellants factory in which the capital goods in question was used. As such, the impugned order passed by the authorities below denying the credit to the appellants on the sole ground that the entries we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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