2007 (3) TMI 113

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....0% in the same financial year, in which the capital goods are received. The remaining 50% Cenvat credit is available in the subsequent financial year subject to the condition that such capital goods are in the possession of the manufacturer of final product in such subsequent years. Admittedly in the present case, capital goods i.e. fixtures were received by the appellants in the year 2001-2002. 50% of the credit was availed in the same financial year and as such is not disputed by the revenue. Remaining 50% of credit was taken in the subsequent financial year i.e. 2002-2003 even when the said fixtures were cleared by the appellants and were not in their possession and use. As such, the authorities below have denied the credit of the balanc....

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....issions on 7-10-2005. Next comes the question whether the capital goods fall under any of the categories mentioned in the said sub-rule. As stated by the Appellants during the course of personal hearing, they are used in course of manufacture of Chassis by way giving shape to the Chassis which cannot be made without these fixtures and are neither components or spares. Judging from their essentiality, they are also not accessories, as accessories are essentially things which can be added to or work with something else to make it more useful or attractive. It is quite obvious that they do not fall under any other categories mentioned in the said sub-rule. Thus, the appellants do not fulfil the condition of Rule 4(2)(b) ibid. and therefore, no....