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2020 (1) TMI 487 - AT - Central ExciseCENVAT Credit - admissibility of balance 50% Cenvat credit on capital goods, in terms of Rule 57 AC (2) of the erstwhile Central Excise Rules, 1944 read with Rule 4 of the Cenvat Credit Rules, 2002 - period 2000-01 to 2003-04 - CBEC Circular No.267/26/2006-CX. dated 28.06.2006 - HELD THAT:- Reliance placed in the case of M/S INDIAN OIL CORPORATION LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE [2013 (9) TMI 419 - PATNA HIGH COURT] where the decision was rendered by the Hon’ble Patna High Court in the context of Rule 4(2)(b) of the Cenvat Credit Rules, 2002, which was effective till 09.09.2004 and the ratio of the said decision applies to the facts of the present case. Therefore, the balance 50% credit taken by the appellant before use of the capital goods, is not admissible. The capital goods were subsequently installed/put to use, the fact of which has also been acknowledged by the learned adjudicating authority in the impugned order. We also take note of the provisions of Rule 4(2)(b) of the Cenvat Credit Rules, 2004 (effective from 10.09.2004), in terms of which the condition of “use” was omitted - there is no time limit is stipulated under the Cenvat Scheme, for taking credit on capital goods, since as per the scheme, the balance credit can be deferred by an assessee to be taken in any financial year or years, subsequent to the financial year in which the capital goods were received. The appellant would be eligible for the credit on 10.09.2004. The appellant, however, would be liable to pay interest, in respect of the period i.e. from the date of taking the credit till 09.09.2004, as per the provisions of law, as applicable - appeal disposed off.
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