https://www.taxtmi.com/caselaws?id=753974 CENVAT credit on capital goods procured in earlier financial years but installed later was disputed on the ground that credit had to be taken only in the year of procurement/receipt. Interpreting Rule 2(a) and Rule 4 of the CENVAT Credit Rules, 2004, the HC held that Rule 4(2)(a) merely caps availment at 50% in the year of receipt, while Rule 4(2)(b) expressly permits taking the balance in any subsequent financial year; neither provision mandates that credit must be claimed only in the year of procurement. Since there was no legal basis to treat the later availment as illegal, the demand for recovery of the credit and the tribunal-confirmed recovery order were set aside, and the appeal was allowed. en-us Wed, 12 Jun 2024 00:00:00 +0530 Mon, 12 Jan 2026 14:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753974 CENVAT credit on capital goods procured in earlier financial years but installed later was disputed on the ground that credit had to be taken only in the year of procurement/receipt. Interpreting Rule 2(a) and Rule 4 of the CENVAT Credit Rules, 2004, the HC held that Rule 4(2)(a) merely caps availment at 50% in the year of receipt, while Rule 4(2)(b) expressly permits taking the balance in any subsequent financial year; neither provision mandates that credit must be claimed only in the year of procurement. Since there was no legal basis to treat the later availment as illegal, the demand for recovery of the credit and the tribunal-confirmed recovery order were set aside, and the appeal was allowed. Case-Laws Central Excise Wed, 12 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753974