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TMI Blog2003 (3) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... India. Sub-rule (3) of Rule 57R, as it then stood, said that in such a situation, taking of credit was subject to the manufacturer furnishing a certificate from the financing company to the effect that the duty has been paid by the manufacturer intending to take credit to the financing company prior to payment of the first lease from the instalment. This certificate, it is stated, has not yet been obtained. 2. The rules contained in Section AAA and AAAA of Chapter V were repealed by Rules 57AA to AK. The new rules, which combined in one set of the rules relating to Modvat credit on inputs as well as on capital goods, did not contain the requirement in the earlier Rule 57Q of the certificate relating to payment of duty to the leasing comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le are clear enough. It is obviously for this reason that the appellant did not take credit for about a year after it received the goods. However Rule 57R and the other rules relating to Modvat as it then stood ceased to exist from 1st April, 2000, having been replaced by the new rules. Rule 57AG contains the transitional provisions. Sub-rule (1) of this rule reads thus :- "(1) Any amount of credit earned by a manufacturer under rules 57A, 57B or 57Q, as they existed prior to 1st day of April, 2000 and remaining unutilised on that day shall be allowable as CENVAT credit to such manufacturer under these rules, and be allowed to be utilised in accordance with these rules." 5. The circular that the appellant refers to was issued by the Min ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owable to Cenvat credit to such manufacturer and be allowed to be utilised in accordance with these rules. Rule 57AC, which contains the provisions for the Cenvat credit, provides in sub-rule 2(a) limits Cenvat credit to 50% of the duty paid on the capital goods within the same financial year in which they were received, sub-rule (b) provides for taking the balance of the credit in a subsequent financial year subject to conditions contained therein. 7. Applying the clarifications of the Board therefore, it would follow that the appellant was entitled to take credit of the duty paid on the capital goods which it received prior to 1st April, 2000. The question that then arises is the applicability of Rule 57AC. As a result of the Board's cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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