2005 (2) TMI 626

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....for the Respondent. [Order per : V.K. Jain, Member (T)]. -  Heard Shri S.K. Roy Choudhary, Advocate on the Stay Application filed by the appellant. The issue relates to the availability of Cenvat credit of duty paid on capital goods. The capital goods in this case was received in January and February, 2000. The duty involved is 9.25 lakhs and the penalty has been imposed is 11.25 lakhs. The....

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....e Advocate for the appellant, the learned JDR Shri N.K. Mishra submitted that in this case it is an undisputed fact that the inputs for the capital goods in this case were received in January and February, 2000. The relevant rule applicable at that time was Rule 57Q of the erstwhile Central Excise Rules. This rule says that the Modvat credit is not available for ingots and billets of non-alloy ste....

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....oved unutilised at that date shall be utilised as Cenvat credit which is as follows : "RULE 57AG. Transitional provision. - (1) Any amount of credit earned by a manufacturer under Rules 57A, 57B or 57Q, as they existed prior to 1st day of April, 2000 and remaining unutilised on that day shall be allowable as CENVAT credit to such manufacturer under these rules, and be allowed to be utilized ....

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....scheme under Section 3A of the Central Excise Act, 1944 for which no Modvat facility was extended. The appellants have received the modvatable capital goods in January and February, 2000. We find considerable force in the argument of the learned JDR that at the material time the credit was available under Rule 57Q of erstwhile Central Excise Rules and the provisions to take Modvat after 1-4-2000 w....