TMI Blog2010 (6) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... company - appellant is entitled to the benefit of Modvat Credit - E/375 & 376/2009 - A/865-866/2010-WZB/AHD - Dated:- 24-6-2010 - Ms. Archana Wadhwa, Member (J) and Shri B.S.V. Murthy, Member (T) REPRESENTED BY : Shri B. Venugopal, Advocate, for the Appellant. Shri S.K. Mall, SDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. - As per facts on record, the appellant is engaged in manufacture of Confectionary and Pharmaceutical products falling under Chapter 17 and 30 of First Schedule of Central Excise Tariff Act, 1985. 2. The appellant's factory was visited by the Central Excise officers on 24-5-06, who conducted various checks and verifications. Statements of various persons including statement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Cenvat Credit Rules, 2004, the credit can be availed in respect of capital goods received in a factory subject to condition that the credit exceeding 50% of the duty paid cannot be availed in the same financial year. Rule 4(3) provides that the Cenvat Credit in respect of capital goods is allowed even if the capital goods are acquired on lease, hire, purchase or loan agreement from a financing company. Accordingly, the appellant contended that a combined reading of the above provisions shows that the purchase of capital goods is not a criteria for allowing Cenvat Credit. Sub-rule 4(3) further extends the scope of availing credit even if the goods have been purchased from financing company. It is not the case that the capital goods must be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in a factory or in the premises of the provider of output service at any point of time in a given financial year shall be taken only for an amount not exceeding 50% of the duty paid on such capital goods in the same financial year. (b) ........ (3) The CENVAT credit in respect of the Capital goods shall be allowed to a manufacturer, provider of output service even if the capital goods are acquired by him on lease, hire purchase or loan agreement, from a financing company." 8. As is seen from the above, credit in respect of capital goods is available in respect of the goods received in a factory at any point of time in a given financial year, subject to the condition that the amount does not exceed 50% of the duty paid on such capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion adopted by the Commissioner would defeat the very legislative intent of allowing Modvat Credit in respect of capital goods. 10. We also note that various decisions relied upon by the assessee before the Commissioner stand distinguished by him on minor and frivolous ground without appreciating ratio of law declared in these decisions. In the case of M/s. Sharda Motors Industries Ltd. v. CCE as reported in 2002 (51) RLT 33 (CEGAT) = 2002 (150) E.L.T. 759 (T), the Tribunal allowed Modvat Credit on the capital goods received by the appellant from M/s. Hyundai Motors India Ltd. under Leave and Licence Agreement. The Commissioner has nowhere observed that M/s. Hyundai Motors Ltd. was a financing company. Similarly, in the case of M/s. Iljin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
