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Sri Krishna Alloys Versus Cestat, Chennai

2015 (7) TMI 1148 - MADRAS HIGH COURT

Recovery of credit availed - moulds and dies - 50% of the credit availed - Rule 57AC(2)(b) - whether the denial of 50% credit as the capital goods in question were not in the possession of the assessee during the period in dispute, viz., 2001-2002 - Held that: - the capital goods should be in possession and use of the manufacturer of final products in such subsequent years. It is not in dispute that the moulds and dies were no longer in existence in subsequent years, as the same having been dest .....

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g the present appeal. This Court, vide order dated 13-3-2006 [2006 (200) E.L.T. 158 (Tri. Chen.)], while admitting the appeal, framed the following substantial questions of law for consideration :- (i) Whether the appellant is entitled to take/avail 50% of the balance Cenvat credit in the next financial year on the capital goods used up in the unit received in the same financial year? (ii) Whether physical possession of the moulds in the next financial year can be put as a restriction especially .....

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use notice for recovery of the 50% of the credit amount of ₹ 1,34,126/- as wrongly taken on the allegation that the moulds and dies were apparently worn out and not in possession of the appellant in April, 2001. After adjudication, the original authority held that the assessee was found not to have fulfilled the condition of possession and use laid down in Rule 57AC(2)(b) and, accordingly, confirmed the proposal, and also imposed a penalty of ₹ 5,000/-. 3. Against the said adjud .....

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learned counsel appearing for the appellant/assessee and the learned standing counsel appearing for the respondent/Revenue and also perused the materials available on record. 5. From a careful perusal of the entire gamut of facts, it is clear that the Tribunal, on facts, came to hold that adjudicating authority as well as the appellate authority have rightly denied the availment of balance 50% of the credit, as the capital goods in question were not in the possession of the assessee during .....

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