TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Modvat Credit Allowed for Capital Goods Under Rule 57Q | Invoice Validity Upheld</h1> <h3>COMMISSIONER OF C. EX., COIMBATORE Versus SSPE. COTTON MILLS (P) LTD.</h3> COMMISSIONER OF C. EX., COIMBATORE Versus SSPE. COTTON MILLS (P) LTD. - 1999 (106) E.L.T. 102 (Tribunal) Issues:1. Availability of Modvat credit on transformers.2. Eligibility of Air Compressors for Modvat credit.3. Modvat credit on weighing machines.4. Validity of invoice for claiming Modvat credit.Issue 1: Availability of Modvat credit on transformers:The Revenue appealed against the Order-in-Appeal allowing Modvat credit on transformers. The Revenue argued that the reliance on previous decisions was legally incorrect. However, the Consultant cited various Tribunal decisions supporting the eligibility of transformers for Modvat credit as capital goods under Rule 57Q. The Judge found that the issue was settled by multiple decisions and ruled in favor of allowing Modvat credit on transformers.Issue 2: Eligibility of Air Compressors for Modvat credit:The Consultant argued that the Air Compressors were not used for refrigeration machinery but for integral processes in manufacturing yarn. Citing relevant Tribunal decisions, the Judge concluded that since the Air Compressors were not used for refrigeration or air conditioning appliances, they were eligible for Modvat credit as capital goods.Issue 3: Modvat credit on weighing machines:The matter of Modvat credit on weighing machines was discussed, with the Consultant referring to previous decisions supporting the inclusion of weighing machines under the definition of capital goods. The Judge found that weighing machines used for weighing raw materials fell within the definition of capital goods under Rule 57Q, making them eligible for Modvat credit.Issue 4: Validity of invoice for claiming Modvat credit:Regarding the validity of an invoice for claiming Modvat credit, the Revenue argued that the invoice was not addressed to the respondents directly. However, the Consultant clarified that the goods were duly duty paid, received by the respondents, and used in their factory. The Judge analyzed the invoice and determined that since the goods reached the respondents and were used in their factory, the Modvat credit should not be denied based on technicalities. The Judge distinguished the case cited by the Revenue and ruled in favor of allowing Modvat credit based on the facts presented.In conclusion, the Judge dismissed the Revenue's appeal, finding no merit in their arguments based on the detailed analysis of each issue and relevant legal precedents cited during the proceedings.
TaxTMI 