TaxTMI 
TaxTMI 
TaxTMI 
2010 (3) TMI 360
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....as confirmed. 3. Briefly stated the facts of the case are that the Appellants are engaged in the manufacture petroleum products and were availing credit in respect of capital goods. Appellant received capital goods in their factory in the year 2000 and availed 50% of the credit. In the month of April, 2001 and April, 2002 Appellant availed the remaining 50% of the credit in respect of the capital goods. Show Cause Notice was issued to the Appellant for denial of 50% credit on the ground that 50% credit which was to be taken in subsequent year was taken prior to installation of the machines i.e. capital goods and demand of interest was also made in the Show Cause Notice. The adjudicating authority held that 50% remaining credit was taken in....
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....contention is that in this Rule there was a clear condition that credit cannot be taken prior to installation and use. However, in the CENVAT Credit Rules, 2001 and 2002 the provisions were made to the effect that 50% of credit can be taken at the time of receipt of the goods in the factory of production and balance of CENVAT Credit can be taken in subsequent financial years in which the capital goods were received if the capital goods are in possession and use of the manufacturer of final product in such subsequent year. The Appellant stressed on the words 'in such subsequent year' to say that the capital goods are in possession and use in the financial year in which the balance credit has been availed hence the impugned order saying that ....
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.....L.T. 7 (S.C.) and the decision of Hon'ble Rajasthan High Court in the case of 1-tindusthan Zinc Ltd. v. Dy. Commissioner of C. Ex.& Cus., Bhilwara - 2007 (220) E.L.T. 50 (Raj.). 6. In this case the dispute is in respect of 50% CENVAT Credit availed by the Appellant in subsequent year. The case of the Revenue is that the same should be availed in case the capital goods are in possession and in use of the manufacturer. The contention of Appellant is that as per the provisions of Rule the balance CENVAT Credit can be taken in the financial year subsequent to the financial year in which the capital goods were received if the capital goods are in possession and use of the manufacturer of the final product in such subsequent year. The main cont....
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....l goods, other than components, spares and accessories, refractory materials and goods falling under heading No. 68.02 and sub-heading No. 6801.10 of the First Schedule to the Tariff Act, are in the possession and use of the manufacturer of final products in such subsequent years. 7. The same provisions are in the CENVAT Credit Rules, 2002. 8. We have no dispute regarding the proposition regarding that the effect must be given to the clear meaning of the words as provided under the Stat ate or Rules. Appellant relied upon the decision of Tribunal in the case of Parasrampuria Synthetics (supra) the issue was in respect of denial of credit of duty paid on capital goods without their being installed in the factory. The Tribunal in Para 6 of ....
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.... be pr& maturely taking credit thus entitling the Revenue to the interest on the same for use of credit during and between the period." These findings are in favour of Revenue and are applicable on the facts of present case. 9. We find as the Rule 4 of CENVAT Credit Rules specifically provides that the balance of CENVAT credit can be availed in the financial year subsequent to the financial year in which the capital goods were received in the factory of manufacture if the capital goods were in possession and use of the manufacturer of the final product in such subsequent year. Therefore we have to read the words possession and use together. In a case where the capital goods were in possession and credit has been availed but not put to use....