https://www.taxtmi.com/caselaws?id=116780 Rule 4(2) of the Cenvat Credit Rules, 2002 limits credit on capital goods received in a financial year to 50% in that year; the appellant could not claim full credit on receipt, but the balance credit remained available in a later financial year if the statutory conditions were met. The excess credit arose from interpretation of the rule and was disclosed to the department, so absent mala fide intent, penalty was not justified. The operative effect is that partial credit is restricted in the year of receipt, deferred credit may be claimed later subject to compliance, and penal consequences do not follow mere interpretational error. en-us Tue, 03 Jan 2006 00:00:00 +0530 Fri, 04 Nov 2022 17:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=116780 Rule 4(2) of the Cenvat Credit Rules, 2002 limits credit on capital goods received in a financial year to 50% in that year; the appellant could not claim full credit on receipt, but the balance credit remained available in a later financial year if the statutory conditions were met. The excess credit arose from interpretation of the rule and was disclosed to the department, so absent mala fide intent, penalty was not justified. The operative effect is that partial credit is restricted in the year of receipt, deferred credit may be claimed later subject to compliance, and penal consequences do not follow mere interpretational error. Case-Laws Central Excise Tue, 03 Jan 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=116780