https://www.taxtmi.com/caselaws?id=241139 Rule 4(2)(b) of the Cenvat Credit Rules, 2004 allows the balance 50% of capital goods credit to be taken in a later financial year if the capital goods remain in the manufacturer's possession. Entitlement is determined by the date of receipt of the capital goods in the factory, not by their later use. As the packing machine was received when the final product was dutiable and initial credit had already been allowed, the subsequent use of the machine for exempted biscuits did not defeat the right to claim the remaining credit. The denial of balance Cenvat credit was therefore unsustainable. en-us Tue, 05 Mar 2013 00:00:00 +0530 Wed, 18 Dec 2013 08:45:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=241139 Rule 4(2)(b) of the Cenvat Credit Rules, 2004 allows the balance 50% of capital goods credit to be taken in a later financial year if the capital goods remain in the manufacturer's possession. Entitlement is determined by the date of receipt of the capital goods in the factory, not by their later use. As the packing machine was received when the final product was dutiable and initial credit had already been allowed, the subsequent use of the machine for exempted biscuits did not defeat the right to claim the remaining credit. The denial of balance Cenvat credit was therefore unsustainable. Case-Laws Central Excise Tue, 05 Mar 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=241139