2016 (8) TMI 381

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.... Sundram Fasteners Ltd., the appellant herein are the manufacturers of Bolts, Nuts and Screws falling under sub-heading No. 73181500 and 73181600 of the CETA, 1985 and cleared the final products on payment of duty and availed Cenvat credit of duty/service tax paid on various inputs and input services under the provisions of Cenvat Credit Rules, 2004.  The appellants were issued a SCN dated 29....

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....behalf of the appellant submits that instead of availing 50% credit on capital goods the appellants have availed 100% credit in the first year inasmuch as the entire capital goods credit will be available to them in the subsequent financial year.   He submits that the appellants have taken the remaining 50% credit prematurely and their case is not a case of availment of ineligible credit....

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....ue reiterated the findings of both the authorities below and submits that the adjudicating authority has rightly disallowed the credit under proviso to Section 11A of the CEA, 1944 and imposed 50% penalty under Rule 15 (2) of CCR read with section 11AC of the Act.  He submits that only after verification of records by the audit, the availment of ineligible cenvat credit by them came to the su....

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.... have taken 100% Cenvat credit in the first year itself, whereas in terms of Rule 4 (2) of Cenvat Credit Rules, 2004, they were required to avail 50% of the credit in the first year and balance 50% in the subsequent financial year (s).  However, the fact that they availed the entire 100% credit in the first year will not make balance 50% as non-available to the appellant.   In the c....