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2010 (3) TMI 360 - AT - Central ExciseInterest-Capital Goods- the Appellants are engaged in the manufacture petroleum products and were availing credit in respect of capital goods. Appellant received capital goods in their factory in the year 2000 and availed 50% of the credit. Show Cause Notice was issued to the Appellant for denial of 50% credit on the ground that 50% credit which was to be taken in subsequent year was taken prior to installation of the machines i.e. capital goods and demand of interest was also made in the Show Cause Notice. The adjudicating authority held that 50% remaining credit was taken in subsequent financial year before the capital goods were put to use and the capital goods were actually put to use after taking of credit hence allowed the credit however demanded the interest in respect of the credit taken and utilized before the capital goods were put to use. Held that- Tribunal in the cases of Ballarpur Industries Ltd., Parasrampuria Synthetics, Ispat Industries Ltd. relied upon by the Appellant held that the installment is pre-requisite for taking second 50% CENVAT credit on capital goods as provided under Rule 4 of CENVAT Credit Rules. In view of above discussion we find no infirmity in the impugned order. The Appeal is dismissed.
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