TMI Blog2011 (2) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... 2)(b) provides that it can be utilized in any year and to the full extent. Therefore, in the instant case, as the Cenvat Credit was availed of in the year 2006-07, when the assessee had not yet registered under Rule 9 of the Central Excise Rules, the assessee did not utilize the Cenvat credit. It is only after registration, in the subsequent year, they have utilized the entire Cenvat credit which was standing to their credit - Decided in favour of assessee. - 47 of 2010 - - - Dated:- 8-2-2011 - N. Kumar and Ravi Malimath, JJ. REPRESENTED BY : Shri T.M. Venkata Reddy, Advocate, for the Appellant. Shri Laxmi Kumaran, Advocate, for the Respondent. [Judgment per : N. Kumar, J.]. This appeal is by the Revenue challenging the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al held that as per Rule 4(2) of the Rules an assessee can avail capital goods credit up to 50% in the year of receipt of the goods and balance in subsequent financial years. There is no prescription that credit to any extent has to be availed in the year of receipt of capital goods. In the instant case, entire credit has been availed in 2007-08, the year following receipt of the goods. The said availment is not inconsistent with the legal provisions. Therefore the Tribunal set aside the impugned order and allowed the appeal granting relief to the assessee. Aggrieved by the same, the Revenue has preferred this appeal. 3. The learned Counsel appearing for the Revenue assailing the impugned order contended that in view of Section 4(2) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovides that only to the extent of 50% of the Cenvat Credit could be utilized by the assessee during the year it is availed of. However, the said Rules do not mandate that the credit should be utilized in the very same year. Once the credit is not utilized in the same year, then Rule 4(2)(b) provides that it can be utilized in any year and to the full extent. Therefore, in the instant case, as the Cenvat Credit was availed of in the year 2006-07, when the assessee had not yet registered under Rule 9 of the Central Excise Rules, the assessee did not utilize the Cenvat credit. It is only after registration, in the subsequent year, they have utilized the entire Cenvat credit which was standing to their credit. Therefore the finding of the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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