TMI Blog2015 (2) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... t installed upto 1.4.2000 also, the CENVAT credit would also be admissible. It may, however, be noted that in respect of all capital goods whether received on or after 1.4.2000 or those that were received prior to 1.4.2000 but not yet installed, the condition that CENVAT credit only up to 50%of the total admissible amount would be available in the financial year 2000-2001 would apply. The balance of the CENVAT credit in respect of such capital goods can be taken in a financial year subsequent to 2000-2001. During the period 01.04.2000 to 09.09.2004, the balance of 50% of CENVAT credit cannot be allowed in the subsequent year unless the capital goods are put to use and mere possession is not enough. - Thus it is apparent that the conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther alleged that cenvat credit would be allowed only in respect of the service tax which is leviable under section 66 of the Finance Act 1994 and therefore the service tax paid under section 66 A of the said Act is not qualified to avail the cenvat credit as the same has not been specified under Rule 3 of cenvat credit Rule 2004. By the impugned order the adjudicating authority dropped the demand proceedings initiated under the show cause notice dtd 13.10.2011. Hence the Revenue filed this appeal. 3. Shri S.K. Mall, Ld Authorised Representative on behalf of the Revenue reiterates the ground of appeal. He submits that the adjudicating authority while passing the order have totally overlooked the eligibility of the cenvat credit of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the capital goods are received in the factory. For such capital goods which were received prior to 1.4.2000 but not installed upto 1.4.2000 also, the CENVAT credit would also be admissible. It may, however, be noted that in respect of all capital goods whether received on or after 1.4.2000 or those that were received prior to 1.4.2000 but not yet installed, the condition that CENVAT credit only up to 50%of the total admissible amount would be available in the financial year 2000-2001 would apply. The balance of the CENVAT credit in respect of such capital goods can be taken in a financial year subsequent to 2000-2001. Further, Para 2 of CBEC Circular No. 267/26/2006-CX-8 dtd 28.4.2006 which is produced as under : It is, therefore dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of Rule 3 of the CENVAT Credit Rules, 2004, retrospectively with effect from 18.4.2006 thereby allowing credit of Service Tax Paid under Section 66A of the finance Act, 1994 (and it received the Presidents assent on 8th April. 2011). The relevant portion of the Finance Bill 2011 and the Section 71 of the Finance Act, 2011is reproduced below: Provision of CENVAT Credit 2004 to be amended Amendment Date of effect of Rules, amendment 1 2 3 Rule 3 of the CENVAT Credit Rules, 2004 as published vide notification number GSR 600(E), dated the 10th September 2004 (23/2004-CENTRAL EXCISE (NT), dated the 10TH September, 2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) the Central government shall have and shall be deemed to have the power to make with retrospective effect as if the Central Government had the power to make rules under section 37 of the Central excise Act, 1944 (1 of 1944), retrospectively, at all material times. 10. In view of retrospective amendment made to sub-rule (1) of Rule 3 of Cenvat Credit Rules, 2004 by inserting clause (ixa) with effect from 18.4.2006, I conclude that the notice is eligible to take CENVAT credit of the Service Tax paid under Section 66A of the Finance Act, 1994. 8. On perusal of the grounds of appeal of Revenue, we find that the Revenue has not disputed the findings of the Adjudicating Authority in this regard. Ld Authorised Representative submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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