rights of the
manufacture of the specified final product to claim the
Modvat credit for the duty paid on the inputs subsequent
to the date ... CAVJUDGMENT
"3. The above discussion indicates that the right to
claim MODVAT credit existed only in Rule 57A. Even
Rule 57E says so. There
Central Excise Rules, 1944 which provides for recovery of MODVAT credit wrongly availed of or utilised in an irregular manner has been partially amended. While ... short 'the Rules'). The petitioners have taken benefit of MODVAT scheme contained in Rule 57A to 57P of the Rules believing that they
claiming credit for the excise duty paid on those inputs under the Modvat (Modified Value Added Tax) Scheme. On 17-5-1990, the date ... credit for duty paid on inputs, having been validly taken under the Modvat Scheme, the same could not be withdrawn because of the final product
whereby the benefit of Modified Value Added Tax (referred to as MODVAT) system to aerated waters was withdrawn.
2. The fact of this case ... procedure known as 'Modified Value Added Tax' (referred to as MODVAT scheme) was introduced in the said Rules immediately upon the presentation
Rules. The petitioners used to take credits under the Modvat Scheme (under Rule 56A or Rule 57A) for the duty paid on their inputs ... Schedule to the Act and that but for their opting for modvat scheme, they would have been entitled to claim exemption under the Notification
Mandamus directing the respondents to continue the benefit of MODVAT Rules to Areated waters manufactured by the first petitioners, and in any event; to permit ... including a proposal to introduce a modified system of VAT, Known as MODVAT, and in March, 1986, in his Budget Speech in Support
ORDER
1. All these writ petitions relate to the propriety of claiming Modvat Credit on the inputs purchased by the petitioners from the open market ... only a show cause notice seeking to recover the amount of Modvat Credit wrongly availed of, and proposing to impose penalty for the violation
countries was introduced at the level of the manufacture and was called MODVAT Scheme. In December, 1985, the first respondent introduced a long term fiscal ... introduce a modified system of value added value added tax or MODVAT as is popularly called. The sum and substance of this scheme
point for consideration before us in this appeal is the admissibility of modvat credit under Rule 57A of the Central Excise Rules, 1944, (hereinafter referred ... following points were made:
(1) Rule 57A of the rules disallows modvat credit on machines, machinery, plant equipment, apparatus, tools and appliances, because they have
above batch of appeals, the department chose to initiate proceedings to recover Modvat credit which according to the department was either wrongly or irregularly ... were instituted by the department to recover the irregularly availed or utilised Modvat credit was, that the department was barred by limitation in terms
