TMI Blog2004 (5) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... s pleaded that appellants are manufacturers of plastic watch boxes, wire retainers coil fixture etc., falling under sub-heading 3923.90 of Central Excise Tariff. The appellants received capital goods during the period from April to September 2000. The appellants instead of taking the credit of 50% of the duty paid on capital goods filed application for Modvat credit only on 1-4-2001 i.e. in the ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he factory of manufacturer. He pleaded that in the year 2000-2001 they were not under the Modvat credit scheme as they were availing exemption under Notification No. 8/2001 and had not paid during the financial year 2000-2001. They opted for Cenvat from financial year 2001-2002 and immediately on 1-4-2001 they took 50% of credit. They stated that since the capital goods were received by them when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the capital goods were received, they can take the entire credit in the next financial year or they can take 50% credit in the next financial year when they become eligible for the credit of Rs. 50% and balance in subsequent year. However, the department has denied the 50% of credit to them which is illegal. He relied on the decision of the Tribunal in the case of - (i) Mukund Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat credit in respect of capital goods received in a factory at any point of time in a given financial year shall be taken only for an amount not exceeding 50% of the duty paid on such capital goods in the same financial year. The Rule 57AC(2)(b) of the Central Excise Rules provides that balance of Cenvat credit may be taken in any financial year subsequent to the financial year in which capit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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