MODVAT CREDIT ON CERTAIN GOODS
SUPREME COURT OF INDIA while dismissing the appeals filed by MADRAS CEMENTS LTD vs. COMMR. OF C .EX. in Civil Appeal No. 2037 of 2006 with C.A. No.7443 of 2008 held as follows: -
QUOTE: -The short point involved is these appeals is whether the Appellant/Assessee is eligible for Modvat credit on certain goods for the period comprising November and December 1999.
The short point involved relates to the eligibility of the Assessee for Modvat credit on certain capital goods which were said to have been used as components, spares and accessories in the manufacturing process of the Appellant for the period in question.
In order to avail Modvat/Cenvat credit, an assessee has to satisfy the assessing Authorities that the capital goods in the form of components, spares and accessories had been utilised durng the process of manufacture of the finished product.
Accordingly, in this case the Appellant was not able to identify the machinery for whch the goods in question had been used. In the absence of such identification, it was not possible for the Assessing Authorities to come to a decision as to whether Modvat Credit would be given in respect of the goods in question. …………….
We are not, therefore, inclined to interfere with the orders of the Tribunal and the Appeals are accordingly, dismissed. UNQUOTE
[for full text of the judgement, please visit http://www.taxesinindia.com and click on the citation taxind_2010_sc_ca_2037/2006]
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