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2015 (2) TMI 342 - AT - Central ExciseDenial of CENVAT Credit - Availment and utilization of credit before actual installation of the capital goods - Port Services - service tax paid under section 66 A of the said Act is not qualified to avail the Cenvat credit as the same has not been specified under Rule 3 of Cenvat credit Rule 2004 - Held that:- In the case of capital goods, the CENVAT rules do not provide installation of capital goods as a pre-requisite for taking CENVAT credit. The credit can be taken as and when the capital goods are received in the factory. For such capital goods which were received prior to 1.4.2000 but not installed upto 1.4.2000 also, the CENVAT credit would also be admissible. It may, however, be noted that in respect of all capital goods whether received on or after 1.4.2000 or those that were received prior to 1.4.2000 but not yet installed, the condition that CENVAT credit only up to 50%of the total admissible amount would be available in the financial year 2000-2001 would apply. The balance of the CENVAT credit in respect of such capital goods can be taken in a financial year subsequent to 2000-2001. During the period 01.04.2000 to 09.09.2004, the balance of 50% of CENVAT credit cannot be allowed in the subsequent year unless the capital goods are put to use and mere possession is not enough. - Thus it is apparent that the condition of installation for availing Cenvat Credit on capital goods was effective till 09.09.2004 and not thereafter. In the present case the capital goods have been procured after this date, in the year 2007-08. - In view of retrospective amendment made to sub-rule (1) of Rule 3 of Cenvat Credit Rules, 2004 by inserting clause (ixa) with effect from 18.4.2006, I conclude that the notice is eligible to take CENVAT credit of the Service Tax paid under Section 66A of the Finance Act, 1994. - Decided against Revenue.
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