TMI Blog2017 (1) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... t payment of duty i.e. 50% of the total duty was alleged, has now been paid by the supplier which has been recorded by the lower authority in their orders. For this particular reason as of today there is no issue of wrong availment of modvat credit particularly on the ground that the duty was not correctly paid by the supplier. Credit allowed - appeal allowed - decided in favor of assessee. - E/3054/05 - A/94526/16/EB - Dated:- 15-12-2016 - Mr. Ramesh Nair, Member (Judicial) And Mr. C.J. Mathew, Member (Technical) Shri Vivin Shah, C.A. for Appellant Shri H.M. Dixit, Asstt. Commr. (A.R) for respondent Per : Ramesh Nair The fact of the case is that the appellant has availed the Cenvat Credit on the capital goods i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availed credit on the strength of invoice issued by the supplier M/s. Fiat India Ltd. the only basis for denial of the credit is that the supplier has not discharged the 100% duty at the time of clearance of the capital goods. He submits that as per the Modvat Credit Rules prevailing at the relevant time, for availing the modvat credit the requirement is that the goods should be accompanied by duty paying document, goods should be received in the factory and should be used in or in relation to the manufacture of final goods. In the present case these requirement are not under dispute. It is not obligatory on the part of the recipient of capital goods to find out whether the correct duty as mentioned in the gate pass was paid or otherwise. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at credit can be allowed only to the extent the duty was actually paid by the supplier of the capital goods. In the present case at the time of clearance of the capital goods by the supplier only 50% of duty was paid. Therefore the appellant was entit for modvat credit only to the extent of actual payment of duty and not more than that. 4. We have carefully considered the submissions made by both the sides. Modvat credit on capital goods is allowed on the basis of gate pass issued by the supplier in respect of the duty shown in the gate pass. Whether the duty was correctly paid or not, that will not affect the availment of modvat credit at the recipient. In the modvat credit Rules, no mechanism was provided to ascertain the correct payme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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