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TMI Blog2017 (12) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... umbai (for short "Appellate Tribunal"). The present appeal was admitted by the Division Bench of this Court by the order dated 25th April, 2007. Paragraph 2 of the said order reads thus : "2. Appeal is admitted on the following substantial question of law : (i) Whether the Tribunal was right in holding that the provisions of Rule 57AC (2)(b) are applicable to deny the credit of balance of the 50 percent of duty paid on the said capital goods in the next financial year 2001-02 when there is no such provision in Rule 57A (2)(C) ?" 3. With a view to appreciate the submissions, a brief reference to the factual aspects will be necessary. According to the case of the appellant-assessee, it is engaged in the business of manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rders, an appeal was preferred before the Appellate Tribunal by the appellant which was disposed of by passing the order of remand. The appeal preferred before the Commissioner of Appeals was restored by the Appellate Tribunal. After remand, the order in original was again upheld by the First Appellate Authority. That is the reason why the appellant preferred an appeal before the Appellate Tribunal on which the impugned judgment and order has been passed. By the impugned judgment and order, the demand for balance 50% of the credit availed by the appellant during the financial year 2001-02 was confirmed. However, the order of penalty imposed on the appellant was set aside. 5. Learned counsel appearing for the appellant has taken us through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received in a factory at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent of the duty paid on such capital goods in the same financial year. (b) The balance of CENVAT credit may be taken in any financial year subsequent to the financial year in which the capital goods were received in the factory of the manufacturer, provided that the capital goods (other than components, spares and accessories, refractories and refractory materials and goods falling under heading No. 68.02 and sub- heading 6801.10 of the First Schedule to the Central Excise Tariff Act) are still in the possession and use of the manufacturer of final products in such subsequent years. (c) CENVAT credit may also be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital goods received in the factory but have not been installed before 1st April, 2000 subject to condition that during the financial year 2000-01 credit shall be taken for an amount not exceeding 50% of the duty paid on such capital goods. In paragraph 8 to 11, the Apex Court held that in the year 2000-01 the credit to extent of 50% can be taken. In paragraph 7 decision of the Apex Court dealt with fact situation. In this case, the Apex Court observed that Rule 57AC does not restrict grant of credit in a given financial year. Further, it was observed that whereas 50% of the credit can be taken in one financial year, the balance may be availed in subsequent years, subject to the condition that the capital goods are still in possession and u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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