TMI Blog2009 (12) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... VAT credit to the extent of 50% availed by the respondent in respect of capital goods in 2005-06 could be allowed. They could not take the first 50% of the duty paid on the capital goods as CENVAT credit in the previous year (2004-05) as their final products were fully exempt from payment of duty during that period. The original authority, in adjudication of a show-cause notice, denied to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CENVAT credit on capital goods during the first financial year in which the goods were received in their factory. One of the parties availed 100% credit in the next financial year, while the other party chose to avail 50% credit in the next financial year. In both the cases, it was held that there was no bar against availment of CENVAT credit in the second financial year to the extent of 50% wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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