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TMI Blog2018 (8) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... . The commercial production of Pig Iron manufacturing facility commenced in June, 2006. To meet the power/energy requirements of the manufacturing facility, a captive power plant was also set up and commissioned on 16.05.2007. The assessee availed 50% of cenvat credit on the capital goods on receipt of the same within the factory premises during the year 2006-2007 and the balance 50% was taken during the subsequent financial year 2007-2008. Show Cause Notice dated 03.09.2008 was issued alleging that cenvat credit on capital goods viz. equipments for boiler part, boiler, pump, turbine etc. required for assembling Captive Power Plant was utilized towards payment of central excise duty for clearance of their finished product from their factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceipt and balance 50% in the subsequent year, and there was no provision in law which barred in taking of such credit of capital goods until their actual use. 3. Ld. D.R. reiterates the discussions and findings of the impugned order and the grounds of appeal in case of the Revenue's appeal against the impugned order. 4. Heard both sides and perused the appeal records. 5. The issue in these cross appeals is, whether cenvat credit on capital goods is allowable or eligible - (a) only after the production from those capital goods commences or, (b) on the day the said goods are installed in the factory premises, or, (c ) on the day the goods are received in the factory premises for intended production of dutiable final products. 6. We find t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sub-rule do not postulate a specific condition of actual use of goods in question. It also stands clarified by Board Circular vide Circular F.No.B-4/7/2000-TRU, dated 03.04.2000 laying down that credit can be taken as and when capital goods are received in the factory but not yet installed. 8. On perusal of Revenue's Appeal No. E/712/2009, it appears that the appeal has been filed on the grounds that penalty should have been imposed on the Respondent under the provisions of Sub-Rule (1) of Rule 15 of the Cenvat Credit Rules, which stipulates that if any person takes or utilize the Cenvat Credit in respect of inputs or capital goods or input services, wrongly or any contravention of the provisions of these Rules, then all such goods are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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