TaxTMI 
TaxTMI 
2016 (10) TMI 68
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. The brief facts of the case are that, the appellants were manufacturing sheet glass falling under Chapter heading No. 70.02 of Schedule to Central Excise & Tariff Act 1985. On 22-01-1994, they started installation of machinery for manufacture of float glass falling under same Chapter heading No. 70.02 within the same factory. From May, 1995 onward they took Modvat Credit of duty paid on the capital goods received in their factory for installation of manufacture of float glass under Rule 57Q of Central Excise Rules, 1944. It appeared to Revenue that the capital goods were received in the factory for manufacture of float glass but the manufacture of float glass had not yet started. Therefore, till the manufacture of float glass does not s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....11/1996 dated 02-12-1996 issued by C.B.E.C. if he is competent. The matter remanded was adjudicated through Order-in-Original No. 74-DEM/2006 dated 07-12-2006 by Original Authority. Through the said order the proposal to deny credit on the ground that the invoices showed address of head office was dropped. Further, the proposal to deny part of the credit on the ground that certain goods were not part of machinery was also dropped. Further, credit on capital goods of Rs. 7,23,08,761/- related to Modvat credit of duty paid on the capital goods brought into factory for installation for manufacture of float glass was disallowed and the demand of duty of Rs. 1,76,10,163 was confirmed. A penalty of Rs. 5,25,00,000/- was imposed under Rule 173Q of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n respect of factories in existence such credit is admissible immediately after the receipt of the goods and in view of such clarification the Modvat credit availed by them was admissible to them. 4. Heard the ld. Counsel of appellant. He has taken us through the said circular issued by C.B.E.C. dated 02-12-1996 wherein in the para 4 of the said circular it has been clarified that for capital goods procured and received into factory prior to 01-01-1996 credit of specified duty availed and utilized immediately will be admissible even if such goods were not actually brought into production of excisable goods on the date of such availment and utilization. He has relied on this Tribunal s decision and final order in the case of Commissioner of....