https://www.taxtmi.com/caselaws?id=53234 Capital goods credit earned under the Modvat/Cenvat scheme before a compounded levy notification came into force did not lapse merely because that special regime imposed a temporary bar on utilisation. The notification was effective only while the compounded levy scheme operated and did not state that validly earned credit would be extinguished after its cessation. Credit on capital goods is earned on procurement, while utilisation is subject to scheme conditions and timing; a temporary restriction cannot be read as permanently destroying accrued credit. The Board circular also recognised the distinction between earning and utilising credit, so the denial of utilisation after the notification ceased was unsustainable. en-us Thu, 17 Jun 2004 00:00:00 +0530 Mon, 11 Oct 2010 17:16:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=53234 Capital goods credit earned under the Modvat/Cenvat scheme before a compounded levy notification came into force did not lapse merely because that special regime imposed a temporary bar on utilisation. The notification was effective only while the compounded levy scheme operated and did not state that validly earned credit would be extinguished after its cessation. Credit on capital goods is earned on procurement, while utilisation is subject to scheme conditions and timing; a temporary restriction cannot be read as permanently destroying accrued credit. The Board circular also recognised the distinction between earning and utilising credit, so the denial of utilisation after the notification ceased was unsustainable. Case-Laws Central Excise Thu, 17 Jun 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=53234