TMI Blog2017 (12) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... e of manufacturer of the final products in the subsequent year - In the circumstances, the ultimate view taken by the Appellate Tribunal in the present case of confirming the demand of 50% credit availed by the appellant in the year 2001-02 cannot be faulted with, as admittedly, the capital goods were not used from December 2000 onwards. Appeal dismissed - decided against appellant. - CENTRAL EXCISE APPEAL NO.61 OF 2007 - - - Dated:- 2-11-2017 - A.S. OKA A.K. MENON, JJ. Mr. Prakash Shah with Mr. Jas Sanghvi i/b PDS for the Appellant. Mr. Pradeep S. Jetly with Mr. J.B. Mishra for the Respondent. ORAL JUDGMENT (Per A.S. OKA, J.) 1. Heard learned counsel appearing for the appellant and the learned counsel appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the duty paid on the said capital goods. According to the case of the appellant from October 2000, the production activities in the factory were suspended and the machines for which credit was taken were not used as a result of suspension of production from October 2000. In April 2001, the appellant took balance 50% of the duty paid on the capital goods by way of credit. 4. A show cause notice was issued to the appellant alleging that the appellant has illegally availed of balance 50% credit of the duty paid on the said capital goods in the financial year 2001-02 as the capital goods were actually not used from October 2000. The Deputy Commissioner of Central Excise disallowed credit taken of the balance 50% and ordered recovery of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Central Excise, Bhavnagar vs. Saurashtra Chemicals Ltd. 2007 (212) E.L.T. 7 (S.C.). He submitted that in view of the law laid down by the Apex Court in the said decision, the reasoning adopted by the Appellate Tribunal in the impugned order is completely erroneous. The learned counsel for the respondent supported the impugned order. 7. We have carefully considered the submissions. It is not in dispute that the capital goods which were brought before 1st April, 2000 were installed in June 2000 and that use of the capital goods was stopped by December 2000. 8. It will be necessary to advert to Rule 57AC which was brought on the statute book with effect from 1st April, 2000. Sub-Rule 1 and 2 of Rule 57AC which reads thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a maximum of one lakh rupees in the financial year 2000-2001, and the balance in subsequent years. 9. It will be necessary to make reference to the decision of the Apex Court in the Commissioner of Central Excise Vs. Saurashtra Chemicals Ltd. This was a case where the assessee had imported generator sets. One of the two generator sets though was imported prior to 1st April, 2000 was not actually installed prior to the said date. In the facts of the case, the Assistant Commissioner of Central Excise came to the conclusion that the assessee was entitled to claim credit only to the extent of 50%. An appeal was preferred by the assessee against the said order which was allowed by the Commissioner of Appeals. Ultimately the appeal was pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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