Clarification reg. Availment & utilisation of Modvat credit on machines purchased but not put to use prior to 7.1.1996

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....New Delhi Subject : Clarification reg. Availment & utilisation of Modvat credit on machines purchased but not put to use prior to 7.1.1996  It has been brought to the notice of the Board that credit have been denied/ sought to be denied by the field formations in cases where the assessees having their factory/ unit already in operation, had availed and utilised Modvat credit of specified ....

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....6. It was only with the issue of Notification No. 1/96-CE(NT) dated 01.01.1996 that it was provided specifically in the rules that Modvat credit could be availed on capital goods only after the capital goods are actually installed and brought into production of excisable goods. 4. In view of the above, it is clarified that for capital goods procured and received into the factory prior to 0....