TMI Blog2001 (9) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1998. The appellants also procured other machines falling under 84.24 which were manufactured in India and were purchased as fully assembled pieces. These were received during the period 1-8-1998 to 14-2-1999. Capital goods Modvat credit of Rs. 1,98,28,732/- was taken by the appellants in April, 1999. Show cause notice was issued on 20th September, 1999 seeking reversal of the credit so taken on the ground that on the date of receipt of the goods during the factory the table annexed to Rule 57Q excluded goods falling under heading 84.24. The Dy. Commissioner upheld the allegation relying upon the Tribunal judgment in the case of PMP Textile Spinning Mills Ltd. v. CCE - 1999 (108) E.L.T. 698. On his confirming the duty and imposing penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s two conditions for denial of the credit. The first condition is that the goods must have been received (emphasis supplied) in the factory. The second is that such capital goods should have been installed or used in the further manufacture. Physical receipt of the goods is the pre-condition and therefore the availability of the notification in terms of the table would be governed by the date on which the goods were received. It is not contested or denied that on the dates on which the goods were received in the factory the table to the Rule 57Q(1) did not cover such goods falling under 84.24. Thus at the threshold stage the subject goods failed the test of the said rule. The denial of the credit on this ground is correct and upheld. 6. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 to Section XVII of the Central Excise Tariff Act, 1985. The same view was held by the Tribunal while dealing with fax machines in the case of Xerox Modicorp Ltd v. CCE - 2001 (130) E.L.T. 219 = 2001 (42) RLT 726. 8. The combined reading of the judgment would indicate that even if for the purpose of customs classification, parts imported were classified as machines in CKD condition, benefit available under the Modvat Scheme to parts could not be denied just because the assessment was done as complete machines. 9. There would be no procedural difficulties in the assessee s claiming the benefit under Rule 57A. It is clear from the judgment of the Tribunal in the case of CCE v. Modi Rubber Ltd. - 2000 (119) E.L.T. 197 that the Tribunal ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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