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2011 (2) TMI 477 - HC - Central ExciseCenvat credit on capital goods - Utilization of Cenvat credit in the subsequent year of availment - As the assessee had not yet registered its Unit under the Rules, the assessee was not entitled to utilize Cenvat credit in the year of acquiring the same - Rule 4(2)(a) of the Cenvat Credit Rules provides that only to the extent of 50% of the Cenvat Credit could be utilized by the assessee during the year it is availed of - Hence, the said Rules do not mandate that the credit should be utilized in the very same year. Once the credit is not utilized in the same year, then Rule 4(2)(b) provides that it can be utilized in any year and to the full extent. Therefore, in the instant case, as the Cenvat Credit was availed of in the year 2006-07, when the assessee had not yet registered under Rule 9 of the Central Excise Rules, the assessee did not utilize the Cenvat credit. It is only after registration, in the subsequent year, they have utilized the entire Cenvat credit which was standing to their credit - Decided in favour of assessee.
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