2004 (7) TMI 207

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....ember (T)]. - Notification No. 6/97-C.E. (N.T.), dated 1-3-1997 allowing credit of duty paid on the capital goods under Rule 57Q, contained, inter alia, the following sub-rule : "(3) Notwithstanding anything contained in sub-rule (1), the manufacturer of the final products shall be allowed credit of additional duty leviable under Section 3 of the Customs Tariff Act, 1975 (51 of 1975) on goods f....

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.... capital goods in the factory" (Ground A.2 of Appeal), "Vapi office should be treated as extension of the factory premises" (Ground A.3 of Appeal) and "the capital goods were constructively received by Ambheti factory when they were received by Vapi Office since the appellants from the day one expressed their intention to install and use the capital goods at the Ambheti factory" (Ground A.4 of App....

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....e do not find much scope for doubt on the issue. Modvat credit, be it on capital goods or on components/parts, is available to machinery used/related to production in a factory, or components/parts used as inputs in a factory. Such relationship to production comes into existence only on receipt of the items in question in the factory of production and not upon their purchase/import/receipt in the ....