9911796707
TMI Blog2005 (6) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... er-in-appeal passed by the Commissioner (Appeals). In this case the appellant availed the benefit of Modvat credit in respect of capital goods in the month of April 2000. A show cause notice was issued to the appellant on the ground that as per the provisions of Rule 57AB of Cenvat Credit Rules the manufacturer can take credit only in respect of 50% duty paid on capital goods in a financial year a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s situation, the contention is that the appellant have taken credit under Rule 57AG of Cenvat Credit Rules. In view of the Board Circular, they are entitled for the credit. The contention of the Revenue is that the board circular is not applicable on the fact of the present case, as on 1st April 2000 the capital goods on which the appellant availed the credit were not installed, therefore, the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital goods received in a factory, shall be taken only for an amount not exceeding 50% of the duty paid on such capital goods in the same financial year. 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 are still in the possession and use of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted under EPCG scheme. In this case in the year when the duty was paid on debonding of the capital goods, the credit was not taken but in the subsequent year 100% credit was taken whereas in the present case the credit was taken on receipt of the capital goods in the same financial year, therefore, the ratio of the above decision is not applicable in the facts of the present case. Keeping in view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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