TMI Blog1996 (2) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the order of the Collector of Central Excise, Kochi. Under the impugned order, the appellants have been denied the benefit of MODVAT Credit of additional excise duty paid on the goods at the time of clearance of the goods through customs and the MODVAT Credit has been restricted to the duty actually payable in terms of Notification 177/86 dated 1-3-1986 by the authorities under whose jurisd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel for the appellants pleaded that in terms of Rule 57A, the appellants are entitled to take MODVAT Credit equivalent to the duty as reflected in the duty paying documents under which the goods were received by them. He pleaded that the duty paid to the Customs authorities was on assessment by them and there was no provision in law to restrict the credit to be taken to the duty as may be held pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied finished product and the Notification 177/86 issued in this regard sets out that MODVAT Credit will be allowed in respect of certain duties paid on the inputs so long as the assessee is able to establish that input in respect of which MODVAT Credit claimed is specified under Notification 177/86 and subject to compliance with the other provisions of the Rules. MODVAT Scheme is a self contained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore provided a separate mechanism to ensure that MODVAT Credit is equal to the duty paid by providing for variation of credit under Rule 57E. So far as taking of MODVAT Credit at the time of receipt of the goods is concerned the same is permissible to the extent specified in the duty paying document under which goods have been received. In view of above, the lower authority s order is not mainta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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