Commissioner of Cen. Excise, Vs. M/S. D.C.L. Polyster Ltd.

1. this appeal from the revenue was argued by shri a.k.jain, jdr. the assessees were represented by shri lilapat, dy.manager.2. the assessees are manufacturing polyster yarn from 1989. in march, 1994, they filed a declaration under rule 57t. the capital goods were received in march/april 1994. the credit was taken in april 1994 and utilised, although, the capital goods were installed later. show cause notice was issued alleging that the credit could not be taken until the capital goods were installed and utilised and that in taking and utilising the credit, the assessees had cleared the goods without payment of duty. the collector dropped the proceedings on perusal of certain instructions given by the board to the effect that in such circumstances the assessees could take credit. the present appeal is filed by the revenue against this order. the sole ground made in the appeal is that the credit could not be taken before installation of the goods. we, however, find that the central board of excise & customs vide their circular no.277/111/96-cx dated 2.12.96 have clarified that where the factory was already in production and where additional capital goods were received prior to 1.1.96, there was no requirement of installation of the goods as a precondition to taking the credit. we also find that the very specific situation is covered in the following judgement of the tribunal:-hindustan cables ltd vs. cce, bolpur