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2016 (8) TMI 381 - AT - Central ExciseCenvat credit - Whether the appellants are eligible for taking Cenvat credit of 100% on Capital goods in the first year itself - Held that:- since the appellants have taken 100% Cenvat credit in the first year itself, whereas in terms of Rule 4(2) of Cenvat Credit Rules, 2004, they were required to avail 50% of the credit in the first year and balance 50% in the subsequent financial year (s). However, the fact that they availed the entire 100% credit in the first year will not make balance 50% as non-available to the appellant. In the case law relied upon by the Ld. Advocate, CCE Vs. Indian Oil Corporation Ltd., the Hon’ble Gujarat High Court has dealt the issue in favour of the appellant assessee. It interpreted Rule 4(2) of CCR, 2004, that it is not necessary that the capital goods be put to actual use for the manufacture of final product, only such goods should be in possession and use of the manufacturer of a final product. Rule envisages availability of Cenvat credit to a manufacturer on receipt of capital goods once the goods are received and as long as such goods are in possession and use of the manufacturer of final product. Appeal allowed by way of remand
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