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2016 (9) TMI 369 - CESTAT KOLKATAModvat credit - capital goods installed and commissioned on 16.09.1997 when restricting clause got inserted in Table to Rule-57Q(1) under Notification No.33/97-C.E.(N.T.) dated 01.08.1997 - Held that:- it is observed that amendments/insertions to Rule 57Q(1) and Rule 57 S(11) were made simultaneously under Notification No. 33/97-C.E.(N.T.) dated 01.08.1997. From the above provisions of MODVAT scheme under Central Excise Rules, 1994 it transpires that intention of the legislature behind above amendments was not to allow credit on capital goods if received by an assessee, who is paying duty on Iron and Steel finished goods under compounded levy scheme as per Section 3A of the Central Excise Act, 1944. Further as per Rule 57 S (11), if any, credit is lying unutilised the same shall lapse. Therefore, in view of the observations and the settled proposition of law by the Hon'ble Bombay High Court in the case of Coral Cosmetics Ltd.-vs.-Union of India [2005 (12) TMI 47 - HIGH COURT BOMBAY] after relying upon the Apex Court's decision in the case of Eicher Motor Ltd. vs. Union of India [1999 (1) TMI 34 - SUPREME COURT OF INDIA], the Cenvat Credit of ₹ 24,13,708.68/- has been wrongly allowed by the First Appellate Authority. - Decided in favour of Revenue
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