TMI Blog2013 (12) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... ved in the factory, therefore, it cannot be said that appellant are not entitled for credit in subsequent financial year when the capital goods were in possession of the appellant - There is no condition provided under Rule 4(2)(b) of the Cenvat Credit Rules that the credit of remaining 50% of duty paid on capital goods is to be availed in case the capital goods have been used in the manufacture of dutiable product – Decided in favour of Assessee. - E/2963 and 3413/2010-SM(BR) - 55714-55715/2013(PB) - Dated:- 5-3-2013 - Shri S.S. Kang, J. Shri R.K. Verma, DR, for the Appellant. Shri Alok Arora, Advocate, for the Respondent. ORDER Heard both sides. 2. Common issue involved in these two appeals and they are being heard tog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e eligibility to take credit in respect of capital goods is the date of receipt of capital goods in the factory. The appellant relied upon the provision of Rule 4 of Cenvat Credit Rules. As the capital goods were received in the factory when the biscuit were liable to central excise duty, therefore, appellant are entitled for whole of the credit. It is only the procedure prescribed under the rule which provide that 50% is to be availed on receipt of the capital goods in the factory and remaining 50% on the subsequent financial year. The appellant relied upon the Larger Bench decision of the Tribunal in the case of Spenta International Ltd. v. CCE, Thane reported in 2007 (216) E.L.T. 133 to submit that credit eligibility is to be determined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncial year subsequent to the financial year in which the capital goods were received in the factory of the manufacturer, if the capital goods are in possession of the manufacturer of the final products, in such subsequent years. As the packing machine was received when the goods manufactured using the packing machine are liable to Central Excise duty and appellant availed 50% of credit. As Revenue has no objection regarding this credit, therefore, as per the decision of the Larger Bench in the case of Spenta International Ltd. v. CCE, Thane (supra) the relevant date for deciding the liability is the date of receipt of the capital goods in the factory. As the appellant are entitled for credit when the packing machine was received in the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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