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2009 (8) TMI 591 - AT - Central ExciseCenvat Credit- Capital goods- The appellant seeks to vacate the demand of Rs. 6,31,311/- being Cenvat Credit on capital goods held to be availed irregularly by them, applicable interest and penalty imposed on them. Held that- We find that the Additional Commissioner wrongly held that the assessee availed entire capital goods credit in 2007-08 contrary to legal provisions. We find that as per Rule 4(2) of CCR, an assessee can avail capital goods credit upto 50% in the year of receipt of the goods and balance in the subsequent financial years. There is no prescription that credit to any extent has to be availed in the year of receipt of capital goods. In the instant case entire credit has been availed in 2007-08, the year following receipt of the goods. This availment is not inconsistent with the legal provisions. In the circumstances, we find the impugned order not in accordance with law. We set aside the same and allow this appeal.
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