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2017 (6) TMI 900 - AT - Central ExciseMODVAT credit - capital goods - Whether the denial of MODVAT credit on capital goods imported by the appellant is admissible or not? Held that: - Sub-clause (a) of the said definition states that capital goods means machines, machinery, plant equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products. Thus, machineries fall within the definition of capital goods - CBEC Circular 351/67/97-CX dated 5.11.1997 states that the crucial test for allowing MODVAT credit would be whether the capital goods were covered either in terms of classification or description of capital goods as defined in Explanation to Rule 57Q. Due to doubts which arose as to whether credit is admissible on capital goods imported under Tariff Heading 98.01, as there was no corresponding Central Excise Tariff Heading, the circular was issued. The said circular also directed that on furnishing of certificate as given therein, the credit can be allowed - The appellants having furnished the certificate, there is no reason to disallow the credit. Appeal allowed - decided in favor of appellant.
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