9911796707
TMI Blog2004 (7) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 6/97-C.E. (N.T.), dated 1-3-1997 allowing credit of duty paid on the capital goods under Rule 57Q, contained, inter alia, the following sub-rule : "(3) Notwithstanding anything contained in sub-rule (1), the manufacturer of the final products shall be allowed credit of additional duty leviable under Section 3 of the Customs Tariff Act, 1975 (51 of 1975) on goods falling under Chapter heading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Ground A.2 of Appeal), "Vapi office should be treated as extension of the factory premises" (Ground A.3 of Appeal) and "the capital goods were constructively received by Ambheti factory when they were received by Vapi Office since the appellants from the day one expressed their intention to install and use the capital goods at the Ambheti factory" (Ground A.4 of Appeal) etc. Reliance has also bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on the issue. Modvat credit, be it on capital goods or on components/parts, is available to machinery used/related to production in a factory, or components/parts used as inputs in a factory. Such relationship to production comes into existence only on receipt of the items in question in the factory of production and not upon their purchase/import/receipt in the office of the manufacturing compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... natory Notes to the Budget 1997-98 also makes this position quite clear. We read that Note : "(j) It has been provided that the credit of additional duty of customs paid on goods imported under project imports (Heading No. 98.01 of the Customs Tariff) shall be allowed. However, the credit shall be restricted to the extent of 75% of the duty paid" (emphasis added). 3. In view of the above noted l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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