2012 (8) TMI 106 - AT - Central Excise

Cenvat credit on capital goods credit was availed in 1st year - when in subsequent year the rest part of the capital goods cenvat credit was claimed and the final product was being exempted from duty - Revenue disallowed such claim Held that - Earning of duty by the assessee is not in dispute - Credit earned not being found to be illegitimate - right accrued is not deniable unless law abrogates such right, the appellant is entitled to the claim of part of cenvat credit on capital goods - Appeal allowed.

Summary

The Appellate Tribunal CESTAT, New Delhi allowed the appeal regarding the denial of cenvat credit on capital goods when the final product was exempted from duty. The Tribunal held that the appellant is entitled to claim part of the cenvat credit on capital goods based on previous judgments. The appeal was allowed.