2010 (12) TMI 1175 - HC - Central Excise

Summary

Issues involved: Transitional credit of capital goods u/s Cenvat Credit Rules

Transitional Credit of Capital Goods:
The High Court of Bombay, in a case involving the allowance of transitional credit of capital goods, admitted an appeal based on the substantial question of law regarding the legality of such allowance. The Court noted that the Tribunal had allowed the Assessee's claim by relying on a previous decision in the case of Ace Timez vs CCE, Bangalor, which was subsequently overruled by a larger bench in the case of Spenta International Ltd. vs Commissioner of Central Excise, Thane. Consequently, the High Court quashed and set aside the impugned order of the Tribunal and restored the appeal for a fresh decision in accordance with the law. The Appeal was disposed of with no order as to costs.