2017 (6) TMI 900

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....hapter 37 of CETA, 1985. They availed credit of Rs. 15,24,584/- being duty paid on the goods classified under Customs Tariff Heading 9801.00 of the Customs Tariff Act which were imported under Project Import Regulation, 1986. The department entertained a view that these goods were not specified in Rule 57Q of the Central Excise Rules, 1944 and therefore the appellants are not eligible for credit. A show cause notice dated 3.6.99 was issued to the appellant proposing to deny the credit and also for imposing penalties. After due process of law, the original authority vide order dated 1.12.1997 allowed the credit for the reason that the goods imported under Project Import Regulation are used for the manufacture of final products classifiable u....

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....He relied upon the CBEC circular and submitted that the said circular gives the proforma of certificate for claiming the MODVAT credit on capital goods imported under Project Import Regulations, 1986. The appellants having furnished the certificate which satisfied the requirements stated in the proforma certificate, the Commissioner (Appeals) ought not to have disallowed the credit. 4. Against this, the learned AR Shri B. Balamurugan submitted that in the certificate produced by the appellant, they have not specified the description of the capital goods and the Central Excise Tariff Heading applicable to the said goods. That therefore, it is not possible to identify whether the imported goods fall within the definition of capital goods a....

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....assified under Heading 98.01 of the Customs Tariff Act. The relevant portion of the circular is reproduced as under:- "7. However, difficulties may be experienced in some cases, in arriving the exact amount of the credit which is eligible for Modvat credit, where separate invoices indicating the c.i.f. value of eligible capital goods, are not available. To overcome the said difficulties, it has been decided to accept a certificate in the proforma enclosed, issued by an independent Cost Accountant, for the purpose of allowing Modvat credit on the capital goods imported under the Project Import Regulations, after necessary verification by the Department. The assessees may be allowed credit of duty, based on the estimated value of suc....