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TMI Blog2005 (9) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... O.I.A. No. 23/2002-C.E., dated 31-1-2002. By the impugned order, the Commissioner (Appeals) has noted that the Capital Goods had not been utilized for manufacture of final products and hence, they were not entitled to avail the Modvat credit. He has also upheld the lower authority's order in respect of the amortization cost of Rs. 3,79,230/- and the Commissioner (Appeals) has not imposed any pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of inputs still lying in the factory, though they have been written off in the books of account. He points out that this citation refers to earlier ruling of the Tribunal rendered in the case of Oswal Agro Mills Ltd. - 1992 (60) E.L.T. 479 (T). He submits that availment of Modvat credit on Caital Goods, which had not been usilised although installed is proper and cannot be denied. He submits t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cancelled. The Capital Goods have already been installed and can be used at any time. Therefore, in terms of the Tribunal ruling cited by the Counsel, the denial of Modvat credit on Capital Goods is not proper. The said order is set aside by allowing the assessees, appeal. The question of imposing penalty on such proper availment of Modvat credit on Capital Goods does not arise as prayed by the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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