https://www.taxtmi.com/caselaws?id=119274 Credit on capital goods for the subsequent year cannot be denied merely because parts of machinery were temporarily sent out of the factory for repair and later reinstalled. Under Rule 4(2)(b) of the CENVAT Credit Rules, 2004, the relevant requirement is that the capital goods remain in the manufacturer's possession and are used in the relevant year. Temporary removal for repair did not breach that condition because the machinery was restored and put back to use. On that basis, denial of credit was unjustified and the issue was decided in favour of the assessee. en-us Tue, 25 Jul 2006 00:00:00 +0530 Tue, 10 Jul 2012 11:21:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119274 Credit on capital goods for the subsequent year cannot be denied merely because parts of machinery were temporarily sent out of the factory for repair and later reinstalled. Under Rule 4(2)(b) of the CENVAT Credit Rules, 2004, the relevant requirement is that the capital goods remain in the manufacturer's possession and are used in the relevant year. Temporary removal for repair did not breach that condition because the machinery was restored and put back to use. On that basis, denial of credit was unjustified and the issue was decided in favour of the assessee. Case-Laws Central Excise Tue, 25 Jul 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119274