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of <h1>Tribunal Upholds Modvat Credit Decision on Capital Goods Pre-1994</h1> <h3>COMMISSIONER OF CENTRAL EXCISE, GUNTUR Versus SIRI (P) LTD.</h3> The Tribunal upheld the lower appellate authority's decision regarding the admissibility of Modvat credit on duty paid capital goods used in machinery ... Modvat credit Issues:- Admissibility of Modvat credit on duty paid capital goods used in machinery installed prior to 1-3-1994.Analysis:The Appellate Tribunal CEGAT, Chennai dealt with stay applications and appeals stemming from Order-in-Appeal No. 3/99 passed by the Commissioner (Appeals), Hyderabad. The Commissioner had based his decision on a previous ruling related to the admissibility of Modvat credit on duty paid capital goods used in machinery installed before 1-3-1994. The Tribunal had previously addressed similar issues in cases such as C.C.E., Guntur v. G.K. Sons & Industries and C.C.E., Guntur v. Beejay Liners & Ors., consistently ruling against the Revenue and upholding the lower appellate authority's decision.The learned DR representing the Revenue reiterated the Revenue's contention that the Commissioner's finding was arbitrary and not legally sound. However, the DR acknowledged that similar issues had been decided against the Revenue in previous cases. Despite the absence of the respondents, the Tribunal proceeded with the decision. The Tribunal referenced its earlier findings in the case of Beejay Liners & Ors., emphasizing that Modvat credit could be allowed for components, spare parts, and accessories that had paid duty after 1-3-1994, even if the capital goods were installed before that date.The Tribunal noted that the Revenue's appeals lacked substance as they failed to provide specific grounds to challenge the eligibility of Modvat credit for components used with machinery installed before 1-3-1994. The Tribunal found no merit in the Revenue's appeals, citing previous decisions and rejecting a reference application filed by the Revenue in a related case involving Delta Paper Mills Ltd. Consequently, the Tribunal confirmed the impugned order and rejected the Revenue's appeals based on the established legal principles and precedents.
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