2014 (2) TMI 277

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.... well as diesel engine. Duty has been paid on the DG set. The duty so paid was with the value addition of diesel engine. But Revenue says that the diesel engine not being used for manufacture, Modvat credit to above extent is not permissible. Revenue denies the benefit claimed. 2. Heard both sides. 3. It is well known that DG set requires diesel engine as well as alternator to become a complete set for functioning thereof. Therefore denial of Modvat credit to the appellant on the diesel engine does not arise having become an input for the DG set. Appellant succeeds on this dispute. 4. Ld. Counsel submits that credit of Rs.5,71,878/- was disallowed on the ground that a photo copy of the bill of entry was produced. He categorically says th....

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....India reported in 1999, (106) ELT 3 (S.C.). Revenue says that under Rule 57 G (5) of the Central Excise Rule 1944, once credit is not taken by manufacturer he shall not take after 6 months of the date of issue of any document specified in sub-rule 3 there under. 8. Heard both sides and also examined the submission of each other. 9. Submission of the appellant that receipt of the input is recorded in part 1 of RG 23 Register needs verification by the authority below. Once such entry appears in respect of the disputed credit there shall be no bar to grant credit to the appellant since taking of credit is a vested right which has accrued when the duty was paid at the time of purchase of input and the input came to factory as well as used in ....

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.... final product manufactured within the same factory irrespective of whether such inputs were used in its manufacture or not. The experience showed that credit accrued on inputs is less than the duty liable to be paid on the final products and thus the credit of duty earned on inputs gets fully utilised and some amount has to be paid by the manufacturer by way of cash. Prior to 1995-96 Budget, the excise duty on inputs used in the manufacture of tractors, commercial vehicles varied from 15% to 25%, whereas the final products were attracted excise duty of 10% or 15% only. The value addition was also not of such a magnitude that the excise duty required to be paid on final products could have exceeded the total input credit allowed. Since the ....

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....cts have been done by the parties concerned, incidents following thereto must take place in accordance with the scheme under which the duty had been paid on the manufactured products and if such a situation is sought to be altered, necessarily it follows that right, which had accrued to a party such as availability of a scheme, is affected and, in particular, it loses sight of the fact that provision for facility of credit is as good as tax paid till tax is adjusted on future goods on the basis of the several commitments which would have been made by the assessees concerned. Therefore, the scheme sought to be introduced cannot be made applicable to the goods which had already come into existence in respect of which the earlier scheme was ap....