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2014 (9) TMI 366 - HC - Central ExciseCENVAT Credit - Whether the Tribunal is justified in holding that the words “in use of” in Rule 4(2) of the Cenvat Credit Rules, 2002 have to be treated as meaning “is available for use” of the manufacturer and whether the Tribunal ought to have held that for the purpose of taking balance amount of Cenvat credit under Rule 4(2)(b) of the Cenvat Credit Rules, 2002 in the financial year subsequent to the year in which capital goods are received, such goods should not only be in possession but should also be in actual use - Held that:- capital goods were received during the financial year 2002-2003. 50% credit on duty paid on such goods was, therefore, rightly taken by the manufacturer in such year. The manufacturer also thereafter took credit for the remaining 50% on 1-4-2004. The Revenue contends that since the said goods were not put in use for manufacture of final product till 13-8-2004, such credit was taken prematurely. Admittedly the capital goods so received by the respondent continued to be in possession and use on 1-4-2004 and thereafter also. In fact, such capital goods were utilized for the purpose of setting up of the laboratory. It can, therefore, not be stated that the goods were not in possession and use of the manufacturer. The manufacturer puts such goods to use for setting up of the laboratory which ultimately would be used for the purpose of manufacture of the final product. Admittedly, the task of setting up the laboratory was completed on 13-8-2004. Under the circumstances, to our mind, the Tribunal cannot be stated to have misconstrued the Rules so as to allow the Cenvat credit to the respondent on 1-4-2004 itself. - Decided against Revenue.
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