2000 (2) TMI 308

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....s filed on 18-6-1994 even though the same were transacted for and received in the factory premises on a date earlier than 17-6-1994. 2.  Heard Shri S. Ranganathan, Ld. Advocate for appellants who submits that the cut-off date 17-6-1994 arises out of issue of Notification No. 27/94 NT, dated 17-6-1994 which allowed Modvat credit on capital goods acquired on lease/loan etc. for the first time . In this case, machines were received on 2 invoices dated 24-5-1994 and one invoice dated 26-5-1994 and though they were physically received in the manufacturer's premises before 17-6-1994, the installation thereof as is evident from their affidavit now on record was on a date subsequent to 17-6-1994 i.e. erection was completed on 26-6-1994 and ....

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....te of installation and commissioning would be the relevant dates. (d) He also submitted that as per rule 57Q(2) , the only prohibition with respect to availability of Modvat credit on capital goods was that those capital goods which were received on invoices prior to 1.3.94 would alone be debarred from this facility. In this case, the goods were received much later and therefore on this count also, they should be eligible for Modvat credit. 4.  Heard Ld. DR who submits that the said notification expanded the scope of the availability of Modvat credit on capital goods to include capital goods which are not purchased outright but which are obtained on lease/loan/hire, purchase etc. Since this was a deliberate act on the part of the....

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....s and records of the case. We have also perused the text of the notification No. 27/94 ibid . A plain reading of the notification shows that by the said non-tariff notification, the Central Government allowed availment of Modvat credit of the specified duty paid on capital goods which had been "acquired" on lease/hire-purchase or loan agreement, from a financial company. It is not disputed that earlier to the issue of this notification Modvat credit was not allowed on such acquired capital goods i.e. which were only available on capital goods which had been outright purchased by the assessee. Therefore, the net effect of this notification is that the Modvat credit scheme has been enlarged in scope to now encompass those situations where cap....