Modvat credit eligibility for machines used to make later-notified goods remained the central dispute under the notification regime.

The excerpt addresses Modvat credit eligibility for machines received before Tariff Heading 52.02 was notified as a finished product, and whether credit could be taken only from the date of Notification No. 60/94-C.E. (N.T.) dated 21-10-1994. It records that the goods manufactured on the machines were held marketable, and that finding became final because no cross appeal was filed. The remaining dispute was whether later inclusion of Heading 52.02 in the notification could validate credit on machines already received. The passage notes the competing contentions and the issue for determination, but it does not state the final adjudication.

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Issues: Eligibility of Modvat credit in respect of machines received before the notification introducing Tariff Heading 52.02 as a notified finished product, and whether such credit could be availed only from the date of notification.

Analysis: The record notes that the goods manufactured on the machines were held to be marketable and that no cross appeal was filed against that finding, making it final. The dispute turned on whether machines used to produce goods falling under Tariff Heading 52.02 could qualify as eligible capital goods for Modvat purposes when the heading was not notified at the time the machines were received, but was later brought within the notification by Notification No. 60/94-C.E. (N.T.) dated 21-10-1994.

Outcome: The excerpt records the rival contentions and the issue for determination, but does not contain the final adjudication on Modvat eligibility.

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