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TMI Blog2003 (12) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... llant. Shri R.C. Sankhla, SDR, for the Respondent. [Order per : V.K. Agrawal, Member (T)]. - In these two appeals the issue involved is whether M/s. Grasim Industries were eligible to take Modvat credit of the entire duty paid on capital goods in 1999 which was availed by them in 2001. 2. Shri B.L. Narasimhan, learned Advocate, submitted that the Appellants had imported certain goods und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned Order has held that the Modvat credit cannot be denied to the Appellants where the duty paid character of the goods and their receipt and use within the factory is not disputed; that the Commissioner (Appeals), however, restricted the availment of Credit to 50% in a financial year holding that in terms of existing Cenvat Credit Rules only 50% of the total credit admissible on capital goods c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rule applicable in the present matter is Rule 57AG which is a transitional provision; that according to this rule any amount of credit earned by a manufacturer under Rule 57A, 57B or 57Q, as they existed prior to 1-4-2000 and remained unutilised on that day shall be allowable as Cenvat credit to such manufacturer and allowed to be utilised in accordance with the rules; that the Modvat credit h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order in the subsequent financial year i.e. 2002-03. Finally he mentioned that the Modvat credit amounting to Rs. 88,266/- has also been disallowed to the Appellants in respect of Fuzzy Control Equipment which the Appellants undertakes to pay immediately. 4. Countering the arguments Shri R.C. Sankhla, learned SDR, reiterated the findings as contained in the impugned Order. 5. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01 itself under Rule 57AG(1) of the Central Excise Rules. We, therefore, set aside the denial of the 50% of the Modvat credit to the Appellants which they could have taken in 2002-03. Accordingly we also set aside the penalty imposed on them. As the Appellants have not challenged the disallowance of credit amounting to Rs. 88,266/- the same is upheld. Both the appeals are disposed of in the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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