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2014 (5) TMI 790 - HC - Central ExciseCenvat/Modvat - Quantum of credit - Restriction of credit - Penalty whether the assessee can claim Cenvat credit pursuant to the provisions of Rule 57AC of the Rules in respect of the goods received prior to 1-4-2000 and installed after date in view of the inclusion of the provisions of Rule 57AC of the Rules inserted on 3-5-2000 - Held that:- capital goods were received by the assessee prior to 1-4-2000, but they had not been installed as on 1-4-2000 and the assessee availed credit of 50% for the assessment year 2000-2001 and availed credit of 50% in the next year which was clearly irregular. In view of the provisions which is clearly contrary to the provisions of Rule 57AC(c) of the Rules, the Hon’ble Supreme Court, after considering the provisions of Rule 57Q(3) of the Rules which was in existence prior to 1-4-2000 and also the provisions of Rule 57AC of the Rules which has come into effect from 1-4-2000, has clearly held that in view of the provisions of Rule 57AC(c) of the Rules, Cenvat credit may also be taken in respect of such capital goods having been received in the factory, but have not been installed before 1-4-2000 subject to the condition that during the financial year 2000-2001, the credit shall be taken for an amount not exceeding 50% of the duty paid on such capital goods - in respect of capital goods received prior to 1-4-2000, installed after that date, only 50% credit is eligible and balance of 50% is not eligible to be availed in the subsequent years - Order set aside - Decided in favour of Revenue.
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