1998 (1) TMI 282

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....y the Factories Department on 15-10-1994. Therefore, the appellants factory is considered to have been come into existence from 15-10-1994, i.e. before filing of the declarations. From the dates of receipt of goods in respect of which capital credit has been denied vide Annexure I to the adjudication order, it is seen that the declaration was filed beyond three months from the date of receipt of the goods into the factory. The Central Excise Officers being creatures of the statute, are not empowered to exceeds the time limits specified in the provisions of the Central Excise Act or Rules." 2. The learned Advocate, Shri Prabhakara Sastry, appearing for the appellants, contended that the definition of factory under Section 2(e) of the C....

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....duction, purchase and receive capital goods in their premises. When this was pointed out, the Board purportedly clarified, by letter dated 26-11-1994, that credit of duty is admissible only when the capital goods enter into production and, therefore, it will not be appropriate to allow credit at the stage of initial setting up of the factory (where the factory is not yet in existence) and the manufacturer intending to take credit in such a case shall continue to file declaration as required irrespective of the fact that such a factory has not come into existence and or got registered. The Board also indicated that credit on capital goods received at the time of establishment of the factory can be availed only after the factory commences pro....