Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 189 - CESTAT NEW DELHIAvailment of balance 50% of Cenvat credit - timing of availing the balance credit on capital goods - Interpretation of provisions of Rule 4(2) of the Cenvat Credit Rules - Held that:- Revenue is not disputing the availability of the balance fifty per cent Cenvat credit to the appellant after the installation of the capital goods. It is only the question of timing of availment of credit. Admittedly the capital goods were received by the appellant and were under their possession. The said Rule 4(2)(b) uses the expression “possession and use of the manufacture of final products”. Revenue views are that the same should be put to actual use before the availing the credit. We find that the said disputed legal issue was the subject matter of Hon’ble Bombay High Court’s decision in the case of Commissioner of Central Excise, Raigad v. Ispat Industries Ltd. - [2013 (3) TMI 362 - BOMBAY HIGH COURT] vide which the Revenue’s appeal was rejected. In view of the above finding of the Hon’ble High Court the expressions “possession” and “use” had to be read together and once the goods are received, their actual installation and use may not be insisted upon. As the capital goods were admittedly received by the appellant and were ultimately installed and used in the manufacture of the final product, we are of the view that the appellant was entitled to avail the 50% of credit in the subsequent financial year 2001-2002 - Consequently, no interest is liable to be confirmed against them and no penalty is liable to be imposed - Decided in favour of assessee.
|