https://www.taxtmi.com/caselaws?id=50849 Modvat credit on capital goods under Rule 57Q was held admissible even though the credit was taken before the manufacturer began producing dutiable final products and the capital goods were first used in making exempt goods. The Tribunal found no statutory requirement of a one-to-one correlation or a time restriction compelling immediate use in dutiable production at the time credit was taken. It treated the 1-1-1996 amendment as clarificatory of the earlier position that capital goods used in the factory for manufacture of excisable goods qualified for credit. Credit was therefore not deniable solely because the goods were initially used for exempt production. en-us Tue, 30 Oct 2001 00:00:00 +0530 Fri, 17 Sep 2010 16:46:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=50849 Modvat credit on capital goods under Rule 57Q was held admissible even though the credit was taken before the manufacturer began producing dutiable final products and the capital goods were first used in making exempt goods. The Tribunal found no statutory requirement of a one-to-one correlation or a time restriction compelling immediate use in dutiable production at the time credit was taken. It treated the 1-1-1996 amendment as clarificatory of the earlier position that capital goods used in the factory for manufacture of excisable goods qualified for credit. Credit was therefore not deniable solely because the goods were initially used for exempt production. Case-Laws Central Excise Tue, 30 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=50849