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2014 (2) TMI 634 - AT - Central ExciseCENVAT Credit on capital goods - assessee has availed 100% credit in the first year itself instead of 50% - levy of penalty - Held that:- Respondent are entitled to take CENVAT credit of duty paid on capital goods up to 50% in the financial year in which the capital goods have been procured and remaining 50% of duty paid on capital goods is entitled as CENVAT credit in the subsequent year. As in this case, the respondent have availed the CENVAT credit of 100% of the duty paid on capital goods in the year in which the capital goods have been procured. - respondents are not entitled to take credit more than 50% in the year in which the capital goods have been procured. But in the subsequent year, they are entitled for the said credit. - Therefore, the argument advanced by the AR that they are required to reverse entire credit is not correct. - Levy of interest and penalty amounting to ₹ 5000/- confirmed.
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