Availment of Modvat credit on capital goods - Amendment of Rule 57Q - Notification No. 1/96-CE(N.T.) - Regarding.

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..... India Ministry of Finance (Department of Revenue) (Tax Research Unit), New Delhi Subject : Availment of Modvat credit on capital goods - Amendment of Rule 57Q - Notification No. 1/96-CE(N.T.) - Regarding. Please find enclosed a copy of the Notification No. 1/96-C.E. (N.T.), dated 1-1-1996 which has been issued to insert a new Clause (ii) in sub-rule (2) of Rule 57Q of the Centra .....

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..... 3. It may be noted that in sub-rule (2) (ii), the words "installed or, as the case may be, used in the manufacture of excisable goods" have been used. Accordingly, where the capital goods are of such a nature that they are not used for the manufacture of excisable goods but are used for other purposes in the factory, the credit can be taken on any date after such goods are installed in the facto .....

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..... edit has not been taken unless a particular capital goods has actually been installed or used by the manufacturer. Actual use of the capital goods intended to produce excisable goods will normally be reflected in the statutory production records. 5. Suitable trade notice may kindly be issued urgently bringing the above changes to the notice of the trade and the departmental officers may also be .....

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