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2016 (10) TMI 68 - AT - Central ExciseModvat credit - capital goods being used for manufacture of float glass which is not commencing production - capital goods were received into factory and central excise duty was paid on them - capital goods were utilized for the manufacture of final products - C.B.E.C. Circular No. 277/111/96-CX dated 02-12-1996 categorically specified that the restriction in said Rule 57Q was introduced only from 01-01-1996 that the credit is admissible only after installation/utilization of capital goods and in respect of factories in existence such credit is admissible immediately after the receipt of the goods. Held that:- it is found that the present case is based only on the understanding of Revenue that the Modvat credit paid on capital goods brought into the factory for manufacture of float glass was not admissible to assessee till such time the manufacture of float glass did not commenced. The said issue has been clarified by C.B.E.C. through said circular dated 02-12-1996. We find that the said circular is squarely applicable in the present case. We therefore set aside both the impugned Orders-in-Original and impugned Order-in-Appeal. - Decided in favour of appellant
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