2011 (5) TMI 177

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....both sides, duly represented by Shri R. Subramanya, ld.Advocate and Shri S.K. Mall, ld.SDR, I find that the appellants availed CENVAT Credit of duty on the capital goods to the extent of 100% in the year of receipt of said goods, instead of availing credit to the extent of 50% in the first year and balance 50% in the next financial year, in terms of Rule 4(2) of CENVAT Credit Rules, 2004. As such,....

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....le in the next financial year. As such, the demand of duty cannot be confirmed on this account.   3. This brings me to the question of interest. The appellant having availed the entire 100% credit in the first year, whereas they were entitled to avail 50% credit, has resulted in excess availment of 50% of the credit. The said 50% credit was available to the appellant in the next financial ....

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....at the appellants were admittedly entitled to the Modvat credit of the entire duty paid on the capital goods. It is only the timing of taking credit which is the subject matter of dispute. Instead of availing the credit to the extent of 50%, the appellant availed the entire 100% at the time of receipt of the goods itself. As the said credit so availed was not even utilised by the appellant, the sa....