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2009 (2) TMI 186 - AT - Central ExciseCenvat Credit on Capital Goods – use of capital goods in the subsequent year for availing balance 50% credit - The balance 50% was availed by them in the subsequent year i.e. in the month of April, 2003, even though the capital goods though in their possession but were not put to use. As such, it was alleged that they had not fulfilled the condition of provisions of Rule 4(2) of Cenvat Credit Rules, 2002. It was further observed that the said capital goods were put to use on various months of the year 2003-04 and the respondents had not acquired any new capital goods during the year 2003-04. – held that - CBEC Circular dated 3-4-2000 cannot be considered as beneficial to the assessee as it nowhere holds that rest 50% credit can be availed in subsequent financial year even before installation of the capital goods - , it has been held that 50% of the balance credit cannot be allowed without installation/use of the goods in the financial year during which it is claimed - interest of ₹ 4,43,984/- is payable – penalty not to be imposed.
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