TMI Blog2007 (4) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order per] - Heard both sides. The appellants received capital goods in their factory on 17-12-2000 and 11-12-2000 and started production on 30-9-01. After crossing the small scale exemption limit, they started paying duty from January, 2002 and availed the entire credit of duty paid on the capital goods. The lower appellate authority has restricted the credit to 50%. Hence this appeal. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate for the appellants. 4. The intention behind the Rule 4(2)(a) of the Cenvat Credit Rules, 2002, is very clear. It does not allow to a manufacturer the entire duty credit in the first year, in which the capital goods are received and the credit is restricted to an amount not exceeding 50%. In view of the fact that there is a maximum limit of 50%, a manufacturer has the liberty to utilize any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce credit was the entire amount of credit they having not utilized any credit in the first Financial year. As such, in the absence of any restriction regarding utilization of the balance credit in the second Financial year under Rule 4(2)(b), the appellants are entitled for availing of the entire credit of the duty paid on capital goods in the second Financial year. 5. In view of my findings ..... X X X X Extracts X X X X X X X X Extracts X X X X
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