2007 (8) TMI 248

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.... and Customs, Aurangabad on 14-08-2003. 3 In fact, the Department  had denied  Credit to the respondent Assessee on capital goods received in the factory on 22-03-2000 although installed after 01-04-2000, and therefore, the Department had issued and subsequently confirmed a demand for Rs.2,90,880/- towards inadmissible CENVAT Credit claimed by the Assessee. In fact, the Department also imposed penalty of Rupees one lakh under Rule 173 (Q) of the Central Excise Rules, 1944 and charged interest presumably under section 11-AB of the Central Excise Act, 1944. The Commissioner (Appeals) was pleased to set aside the order of the original authority i.e. the Assistant Commissioner, Central Excise and Customs, Nanded Division, Nanded by r....

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.... such capital goods which were received prior to 1.4.2000 but not installed upto1.4.2000 also, the CENVAT credit would also be admissible. It may, however, be noted that in respect of all capital goods whether received on or after 1.4.2000 or those that were received prior to 1.4.2000 but not yet installed, the condition that CENVAT credit only up to 50% of the total admissible amount would be available in the financial year 2000-2001 would apply. The balance of the CENVAT credit in respect of such capital goods can be taken in the financial year subsequent to 2000-2001." For the purpose of pressing admission of the appeal, learned Assistant Solicitor General has placed reliance upon earlier Circular F. No. B.4/5/2000-TRU dated 31st March,....