TaxTMI 
TaxTMI 
2017 (6) TMI 467
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.... brief facts are that the appellants were manufacturing Sheet Glass. From 20^th January, 1994, they started installation of plant and machinery for manufacture of Float Glass also under the same Chapter Heading No.70.02 within the same factory premises. From May, 1995 onwards, they took Modvat Credit of the duty paid on the capital goods received in their factory for installation of manufacturing facility of Float Glass under Rule 57 Q of Central Excise Rules, 1944. 3. The SCN dated 27.09.1996 was issued as it appeared to Revenue that while checking the Modvat documents, that is RG-23 C (I)/(II) duty paying documents of inputs for the month of April, May & June, 1996, it was observed that Credit on all the items is not admissible and acc....
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.... that credit was taken on capital goods acquired for manufacture of Float Glass, which had not yet started production and the credit so taken was utilised in clearance of Sheet glass (existing product). It was held that the issue involved is covered and clarified by CBEC vide circular dated 02.12.1996, wherein it was clarified that capital goods if received in the factory before first January, 1996, even if they are not installed/manufactured, credit was available. The said circular is applicable under the facts and circumstances and accordingly the appeal was allowed in favour of the appellant. Accordingly, credit have been taken undisputedly in the factory of production and the same have been utilised subsequently in manufacture and clear....
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....oduct for which the capital goods were brought or required, the production of the product namely Float glass had not started by then. We conclude that no one-to-one correlation is required for taking credit on receipt of capital goods. The only satisfaction required is that the capital goods have been received in the factory of production and subsequently put to use for manufacture of taxable products, which fact is not disputed by Revenue. Accordingly, we allow the Cenvat credit of Rs. 1,68,304/-. 6. So far, the credit on the items, the detail of which is provided below, disallowed mainly on the ground that declaration as required under rule 57U, was not filed are:- S.N. Item Description 1 Tin Ingots (Rs.16,43,610) Tin....
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....Rs.97,427), Actuator system with Ball Value (Rs.13,427) Actuator system is used to stop oil flow in case of power failure in the furnace. Solenoid value, limit switch, manual override are accessories of actuator system. 4 Thermocouple (Rs.23,270) Thermocouple is used to maintain temperature in the furnace which has a bearing to the quality of final product, if the temperature varies. 5 Pneumatic tyres, lowback rest, head tail light oxy catalyst gas purifier, rotating forks and single hose adaptation unit (Rs.1,09,456,41) These are all accessories of fork lift which is used for handing the culets (broken glass) at cold end section to be fed to the batch house for recycling purpose. 6 Ingersoll Rand Air compressor c....
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....laration under Rule 57T of CER, 1944 is mandatory and substantive requirement or a procedural requirement' and 'whether or not non-compliance with the said requirement would disentitle the manufacturer/assessee to avail Cenvat Credit'. The Hon'ble High Court following its earlier decision in the case of CCE Vs. ITC Ltd reported at 2008 (224) ELT 226 (Mad.), dismissed the appeal of Revenue. The learned counsel also brings to our notice Circular No.441/7/99-CX dated 23.02.1999, wherein the Board have clarified and given guidelines to be followed in respect of Rule 57G and 57T of Central Excise Rules, 1944, wherein it have been directed by the Board before issuing show cause notice for a wrong availment of Modvat Credit by the assessee on ....