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2009 (4) TMI 310 - AT - Central ExciseRestriction to avail credit of 50% of duty whether covers education cess - Sub-rule 2(a) of Rule 4 of Cenvat Credit Rules, 2004 (CCR) lays down that on receipt of capital goods in a factory, Cenvat credit shall be taken for an amount not exceeding 50% of the duty paid on such capital goods in the same financial year. - M/s. DCW Ltd availed in 2005-06, 50% of the duty and the entire education cess paid on capital goods received, on the plea that the restriction in the sub-rule applied only to duty of excise; restriction did not cover education cess - As per Clause 93 of the Finance Act, 2004, education cess shall be a duty of excise. - In the circumstances, I hold that the restriction envisaged in the sub-rule (4) of CCR encompasses also the Cenvat credit of education cess admissible to the assessee on receipt of the capital goods. – In year of receipt, full credit of education cess cannot be taken
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