TaxTMI 
TaxTMI 
2002 (6) TMI 150
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....manufacturer of cement. In the year 1996, they imported capital goods under Project Import Scheme. Goods imported under Project Import Scheme are classifiable under Chapter Heading 98.01 of the Customs Tariff Chapter Heading 98.01 was not specified under Rule 57Q. The installation of capital goods was completed after 1-3-97 and the respondent took credit thereafter. 3.W.e.f. 1-3-97 chapter heading 98.01 was specified under Rule 57Q. A SCN was issued to the respondent herein asking them to explain as to why Modvat credit should not be restricted to 75% only. The Asstt. Commissioner allowed them Modvat credit only to the extent of 75% of the CVD paid on capital goods by the respondent herein. On appeal however, the Commissioner (Appeals) uph....
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....ect Import Heading) was not one of the headings specified under Rule 57Q. However, goods under Project Import were extended capital goods credit if the machines/goods satisfied the condition of capital goods as it then stood. He submits that since capital goods imported satisfied the definition of capital goods in terms of Rule 57Q as it then stood in 1996, the respondent took Modvat credit. 7.Ld. Counsel submits that when the goods were received in the factory of the respondent herein, there was no restriction as to the quantum of CVD to be taken as Modvat credit. The respondent herein rightly took credit of 100% of CVD paid on imported goods. He submits that the goods in their case were imported prior to 1-3-97 and therefore, the conditi....
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.... and if there was no Modvat credit available at that time, the question of subsequently making available any Modvat credit would not arise. 8.Ld. Counsel also cited and relied upon the judgment of this Tribunal in the case of CCE v. P.M.P. Textiles Spinning Mills Ltd. reported in 1999 (108) E.L.T. 698 in which the Tribunal held that eligibility of Modvat credit under Rule 57Q of Central Excise Rules, 1944 will be determined at the time when the goods are received and if at the time of receipt Modvat credit is not available on the goods, the same will not be eligible for Modvat credit. Ld. Counsel also referred to the judgment of this Tribunal in the case of CCE, Coimbatore v. Best Cotton Mills (P) Ltd. reported in 1999 (105) E.L.T. 647 in ....