TMI Blog2007 (1) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... the Cenvat Credit Rules, 2002, credit was not admissible on capital goods used exclusively in the manufacture of exempted products. The assessee had received and installed certain goods during the financial year 2002-03. Since the said capital goods were received and installed by the assessee at the time when their finished products were exempted from payment of Central Excise duty, the credit of specified duty paid on the said capital goods appears to be not available to the assessee in absence of specific provisions for credit of duty on capital goods already installed in the factory. However, the assessee availed Cenvat credit of Rs. 7,59,259.00 of the specified duty paid on the said capital goods from 30-5-2003 and 31-7-2003 in contrav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order was passed and within one month after receipt of the show cause notice. The appellants have brought this fact to the notice of the Commissioner (Appeals) and raised as one of the ground in the memo of appeal before him among others. The other grounds are that :- (a) The board has clarified in its Circular dated 29-8-2000 that if capital goods were received before 1st April, 2000 and also installed before that date but Modvat credit was not taken for some reason prior to 1-4-2000, the said credit is available because the Modvat credit had been earned by the manufacturer. There is no limit for utilizing the credit of duty paid on capital goods after they are received and installed in the factory. (b) In the case of M/s. ACE Timez ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in para 3 of the decision in the case of ACE Timez v. CCE, Bangalore, 2004 (170) E.L.T. 371 (Tri. Bang.) is as follows :- The appellants had received the capital goods during the year 2000-2001. However, they could not take any credit on the capital goods as they were working under exemption. However from 1-4-2001, they started paying duty and opted for the Cenvat Credit Scheme. Therefore, they are eligible to take credit of duty on the capital goods during the year 2001-2002. Rule 4(2)(a) and (b) of Cenvat Rules, 2002 do not deny credit, if it is not taken in the same financial year in which the capital goods were received. It only restricts that in the financial year in which capital goods were received, the credit not exceeding 50% o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
