https://www.taxtmi.com/forum/issue?id=4439 CENVAT on capital goods: Rule 4(2)(a)&(b) permits taking an initial portion of credit in the year of receipt and the balance in the next financial year if the capital goods are in the factory; possession, not use, is generally sufficient. A CBEC circular dated 28 April 2006 clarified that during the earlier period when the rule expressly required 'use', the balance credit could not be allowed unless the goods were put to use, and recovery was directed for credits availed irregularly in that period. en-us Sat, 28 Jul 2012 10:09:53 +0530 Thu, 23 Jan 2025 15:57:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=4439 CENVAT on capital goods: Rule 4(2)(a)&(b) permits taking an initial portion of credit in the year of receipt and the balance in the next financial year if the capital goods are in the factory; possession, not use, is generally sufficient. A CBEC circular dated 28 April 2006 clarified that during the earlier period when the rule expressly required 'use', the balance credit could not be allowed unless the goods were put to use, and recovery was directed for credits availed irregularly in that period. Discussion-Forum Central Excise Sat, 28 Jul 2012 10:09:53 +0530 https://www.taxtmi.com/forum/issue?id=4439