TMI Blog1996 (6) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... er (T)]. The prayer in the application is for dispensation of pre-deposit of a duty of Rs. 33,98,542. 2. Shri Chidambaram, learned Counsel for the applicants/appellants pleaded that the appellants had received in their factory capital goods eligible for Modvat credit under Rule 57Q and taken credit of the duty in their RG 23A Part II and thereafter, they utilised part of the same for payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Modvat credit taken was instantly available since they took the credit in their books. He pleaded that subsequently, the law was amended with effect from 1-1-1996 by Notification issued and by the said notification it has been set out that credit could not be taken in respect of capital goods unless the same were installed in the factory or used in the manufacture of the goods. He pleaded tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants clarified that capital goods which had been received in the factory have since been put to use after Modvat credit was utilised between July and October 1995. He pleaded that the authorities in the order have merely stated that while this credit can be taken it should be kept frozen and this frozen credit can be utilised on installation of the machinery in the factory. He pleaded that as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of capital goods which have long life and which are to be used over a period of time for manufacture of goods that the benefit in respect of the same would be available only in the event of the same being put to use by the assessee in his factory. In this view of the matter, we observe that prima facie the interpretation placed by the learned lower authority in Rule 57Q read with Rule 57S, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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