2003 (7) TMI 110

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....appellant-company received during 1996-97 various items of capital goods, required to manufacture coloured coated paper. The machinery was not installed and continued not to be installed to this date. The rules relating to Modvat credit, as they stood on the date of the receipt of the goods, required the capital goods to be installed before the duty paid on them to be taken as credit. The appellan....

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....e (ii)(c) contain the specific provision in respect of capital goods which have been received prior to these rules, but having been installed. They provided that 50% of duty paid to be taken as credit during the financial year 2000-2001. Acting on these rules, the appellant took as credit between April and December 2000, 50% of the duty paid on the goods which it received, but not installed. This ....

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....ods in question, but as descriptive in the sense that the goods should ultimately find use. He points out that throughout the period from 1986 onwards, when the Modvat rule came into force, credit of the duty paid on the inputs was permitted to be taken when they were received. Such inputs would invariably be used in the manufacture only some time after they were received and the interval between ....

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....rates what the Commissioner does, he is unable to answer this point. 4. A plain reading of the rule supports the view advanced by the appellant. Unlike the earlier rules, the rules were at the relevant time do not specifically provided for the capital goods in question to be installed before credit can be taken. The circular of the Ministry of Finance is explicit that installation is not a pre-re....