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TMI Blog2000 (2) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... e were transacted for and received in the factory premises on a date earlier than 17-6-1994. 2. Heard Shri S. Ranganathan, Ld. Advocate for appellants who submits that the cut-off date 17-6-1994 arises out of issue of Notification No. 27/94 NT, dated 17-6-1994 which allowed Modvat credit on capital goods acquired on lease/loan etc. for the first time . In this case, machines were received on 2 invoices dated 24-5-1994 and one invoice dated 26-5-1994 and though they were physically received in the manufacturer's premises before 17-6-1994, the installation thereof as is evident from their affidavit now on record was on a date subsequent to 17-6-1994 i.e. erection was completed on 26-6-1994 and they were commissioned for manufacturing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant dates. (d) He also submitted that as per rule 57Q(2) , the only prohibition with respect to availability of Modvat credit on capital goods was that those capital goods which were received on invoices prior to 1.3.94 would alone be debarred from this facility. In this case, the goods were received much later and therefore on this count also, they should be eligible for Modvat credit. 4. Heard Ld. DR who submits that the said notification expanded the scope of the availability of Modvat credit on capital goods to include capital goods which are not purchased outright but which are obtained on lease/loan/hire, purchase etc. Since this was a deliberate act on the part of the Govt. to expand the scheme to now cover such acquired ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notification No. 27/94 ibid . A plain reading of the notification shows that by the said non-tariff notification, the Central Government allowed availment of Modvat credit of the specified duty paid on capital goods which had been "acquired" on lease/hire-purchase or loan agreement, from a financial company. It is not disputed that earlier to the issue of this notification Modvat credit was not allowed on such acquired capital goods i.e. which were only available on capital goods which had been outright purchased by the assessee. Therefore, the net effect of this notification is that the Modvat credit scheme has been enlarged in scope to now encompass those situations where capital goods have not been purchased outright but have been 'a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the substantive right in a notification. Therefore, merely because the date of declaration fell after the issue of the notification, it cannot be held that the said declaration gave to the appellant substantive right to earn credit. 9. As far as the submission of Ld. Advocate on Rule 57Q(2), we again find great force in the submission of Ld. DR that the said rule applies to cut off date with respect to the original scheme of Modvat credit on capital goods and is therefore in any way related with the said notification which expanded the scope of the original scheme. 10. The net result of the above analysis is that we do not find any infirmity in the order-in-appeal impugned which compels us to interfere with the same and acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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