Availment of Modvat credit on capital goods - Amendment of Rule 57Q - Notification No. 1/96-CE(N.T.) - Regarding.

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.... (Department of Revenue) (Tax Research Unit), New Delhi Subject : Availment of Modvat credit on capital goods - Amendment of Rule 57Q - Notification No. 1/96-CE(N.T.) - Regarding. Please find enclosed a copy of the Notification No. 1/96-C.E. (N.T.), dated 1-1-1996 which has been issued to insert a new Clause (ii) in sub-rule (2) of Rule 57Q of the Central Excise Rules, 1944. 2. The amendment h....

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....ii), the words "installed or, as the case may be, used in the manufacture of excisable goods" have been used. Accordingly, where the capital goods are of such a nature that they are not used for the manufacture of excisable goods but are used for other purposes in the factory, the credit can be taken on any date after such goods are installed in the factory. This would apply to capital goods like ....