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2015 (1) TMI 588 - CESTAT KOLKATA100% CENVAT Credit availed on capital goods in the same year - removal as such or not - On receipt of the said moulds in their factory, the appellant availed 50% of the eligible CENVAT Credit and put the same to use in their factory for further manufacture of finished excisable goods. The appellant, in the same financial year, at the time of clearance of the said moulds to their sister concern, availed balance 50% of the CENVAT Credit and cleared the said moulds, as such, by debiting the entire amount of CENVAT Credit availed on such moulds. The Revenue has denied the balance 50% of the CENVAT Credit in the same financial year on the ground that once moulds are put to use, the same loose the character as such, hence the appellant could not be eligible to avail CENVAT Credit on the balance 50% of the CENVAT Credit at the time of its clearance in the same financial year. Held that:- Appellant had reversed the entire amount of CENVAT credit availed before removal of the capital goods in the same financial year. In the result, we have no hesitation to conclude that the capital goods which were put to use and when cleared from the factory, would be eligible to the balance 50% of CENVAT credit available on such capital goods on its clearance from the factory in the same financial year. Consequently, we do not find merit in the order of the Ld. Commissioner(Appeal) and the same is set aside - Decided in favour of assesse.
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