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TMI Blog2006 (1) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... y the lower authorities, the assessee was not entitled to take balance 50% of Cenvat credit on the moulds and dies in question. Rule 4(2)(a) lays down that up to 50% of Cenvat credit on capital goods received in the factory in a given financial year could be taken in the same year. Thus, the assessee seems to have acted under a bona fide belief that they are entitled to take balance credit in the subsequent financial year. This situation does not call for invocation of penal provisions against them. Hence I am of the view that the lower authorities should not have imposed any penalty on the assessee. In the result, it is held that the credit in question is not admissible to the appellants, but no penalty is imposable on them. Accordingly, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l referred to is the amendment brought to Rule 4(2)(b) of the Cenvat credit Rules, 2002 as also the Board s Circular issued in clarification thereof. According to Rule 4(2)(b) as so amended, the balance 50% of Cenvat Credit on moulds and dies could be taken in the subsequent financial year without any requirement of the capital goods having to be in the possession and use of the manufacturer in such subsequent year. Clarifying the amended provisions, the CBEC, in the Circular referred to above, stated as under : Certain other changes in Central Excise Rules, 2002 and Cenvat Credit Rules, 2002 have been carried out which may be gone through. Now the Export-Oriented Units shall also be required to give the details of the goods manufactured an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in such financial year subsequent to the year of acquisition. The Board, further, clarified that the Rule was amended to allow credit in respect of balance of 50% on moulds and dies in subsequent financial year even if the condition of these goods having to be in the possession and use of the manufacturer of the final product in such subsequent year was not fulfilled. This clarification ex facie would rule out retrospective effect of the amendment. I have also seen the earlier Circular of the Board bearing No. 747/63/2003-CX., dated 22-9-2003 produced by the learned SDR. This was the circular which was further clarified as above and hence I need not read this Circular. The CBEC themselves did not contemplate retrospective effect of the ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on such capital goods in the same financial year if the said capital goods are cleared as such in the same financial year . On account of destruction, in use, of the moulds and dies in 2000-2001, the moulds and dies as such did not exist with the assessee in the subsequent period. Perhaps such non-existence of moulds and dies beyond the financial year in which the goods were acquired by the assessee could be taken as analogous to the case of clearance of capital goods as such in the same financial year. If that be so, 100% Cenvat credit could have been taken in 2000-2001 itself, going by the above analogy. However, the assessee never thought of availing Cenvat credit on the moulds and dies in this manner. They have been carried away by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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