Pre-installation capital goods credit under Rule 57T allowed in a running factory for goods received before 1-1-96.

Credit on capital goods under Rule 57T was admissible before installation where the factory was already in production and the goods were received before 1-1-96. The governing Board circular treated installation as not being a precondition in that situation, and earlier Tribunal decisions followed the same view. Accordingly, pre-installation credit was allowed in the stated circumstances, and the Revenue's objection failed.

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Issues: Whether credit on capital goods under Rule 57T was admissible before installation where the factory was already in production and the goods were received prior to 1-1-96.

Analysis: The appeal concerned only the Revenue's objection that credit could not be taken before installation of the capital goods. The relevant Board circular clarified that, in a running factory and for capital goods received prior to 1-1-96, installation was not a precondition for taking credit. The situation was also covered by prior Tribunal decisions following the same view.

Conclusion: Credit was admissible before installation in the stated circumstances, and the Revenue's challenge failed.

Ratio Decidendi: Where capital goods are received in a factory already in production prior to 1-1-96, credit under Rule 57T is not denied merely because installation occurs later if the governing circular and precedent permit pre-installation credit.

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