2011 (2) TMI 477

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....pellant. Shri Laxmi Kumaran, Advocate, for the Respondent. [Judgment per : N. Kumar, J.]. - This appeal is by the Revenue challenging the order passed by the Tribunal [2010 (251) E.L.T. 536 (Tri.-Bang.).] which granted the benefit of Cenvat Credit to the assessee, setting aside the order passed by the lower authorities. 2. The assessee is a manufacturer of excisable goods, i.e., m....

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....pellate authority affirmed the said order. Aggrieved the assessee preferred an appeal to the Tribunal. The Tribunal held that Rule 3(1) of the Rules governs availment of credit of various types of duties. There is no bar in an SSI unit taking Cenvat credit on inputs or capital goods received dining 2006-07. The SSI unit can accumulate capital goods credit till it exhausts the exempted value of cle....

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....(2) of the Rules, the assessee must utilize the Cenvat credit in the year of its availment. It is only remaining 50% they can utilise at any point of time. In the instant case, admittedly, the assessee did not utilise Cenvat credit in the year in which the Cenvat credit was availed. Therefore he submits that the Tribunal committed a serious error in setting aside the order passed by the appellate ....

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....dent for utilizing the Cenvat credit. It is also not in dispute that the assessee availed Cenvat credit during the period 2006-07. As the assessee had not yet registered its Unit under the Rules, the assessee was not entitled to utilize Cenvat credit in the year of acquiring the same. Rule 4(2)(a) of the Cenvat Credit Rules provides that only to the extent of 50% of the Cenvat Credit could be util....