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2015 (12) TMI 1209 - HC - Central ExciseDenial of MODVAT Credit - Whether Tribunal committed error in allowing the Modvat Credit of Goods which were received prior to 16.03.1995 by the Assessee and which were not covered under the definition of Capital Goods prior to 16.03.1995 and whether the said goods were eligible for Modvat Credit under Capital Goods vide Notification No.11/95- CE(NT) dated 16.03,1995 - Held that:- there is no legal error in the impugned order passed by the Tribunal in confirming the order passed by the Commissioner (Appeals), who has correctly interpreted the provisions of rule 57Q of the rules. The facts as emerging from the record reveal that even prior to 16th March, 1995, the goods on which the assessee had availed Modvat credit were capital goods as envisaged under rule 57Q of the rules. The subsequent notification dated 16th March, 1995 merely specifies the Chapter Headings and the capital goods. The amended sub-rule (2) of rule 57Q provides that notwithstanding anything contained in sub-rule (1), no credit of the specified duty paid on capital goods (other than those capital goods in respect of which credit of duty was allowable under any other rule or notification prior to the 16th day of March, 1995) shall be allowable if such capital goods were received in the factory before the 16th day of March, 1995. On a plain reading of sub-rule (2) of rule 57Q of the rules, it is evident that credit of duty would be allowable on the capital goods in respect of which the credit of duty was allowable under any other rule or notification prior to 16th March, 1995. Under the circumstances, when the capital goods on which the assessee had claimed credit were capital goods in respect of which credit of duty was allowable under rule 57Q prior to its amendment under 16th March, 1995, such capital goods were entitled to Modvat credit and the amendment of the said rule would not take such goods out of the ambit of the excluded categories even in terms of sub-rule (2) of rule 57Q. - it is not possible to state that the impugned order passed by the Tribunal suffers from any legal infirmity so as to give rise to any question of law much less, a substantial question of law so as to warrant interference - Decided against Revenue.
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