https://www.taxtmi.com/caselaws?id=76644 An SSI unit availing exemption under Notification No. 8/2003-C.E. is not barred from taking Cenvat credit on eligible inputs or capital goods received during the exemption period. Rule 3(1) permits such credit, and the credit on capital goods may be accumulated until the unit crosses the exemption threshold and starts paying duty. Rule 4(2) also allows up to 50% of the capital goods credit in the year of receipt, with the balance taken in later financial years. On this analysis, credit availed in the subsequent year remains consistent with the Cenvat Credit Rules, 2004, and the contrary view is unsustainable. en-us Mon, 17 Aug 2009 00:00:00 +0530 Mon, 12 Jul 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76644 An SSI unit availing exemption under Notification No. 8/2003-C.E. is not barred from taking Cenvat credit on eligible inputs or capital goods received during the exemption period. Rule 3(1) permits such credit, and the credit on capital goods may be accumulated until the unit crosses the exemption threshold and starts paying duty. Rule 4(2) also allows up to 50% of the capital goods credit in the year of receipt, with the balance taken in later financial years. On this analysis, credit availed in the subsequent year remains consistent with the Cenvat Credit Rules, 2004, and the contrary view is unsustainable. Case-Laws Central Excise Mon, 17 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76644