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TMI Blog2007 (2) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... of 100% on the capital goods during the subsequent financial year. The appellants herein engaged in the manufacture of carburetors falling under CSH No. 8409.00 of the Schedule to the Central Excise Tariff Act, 1944. During the scrutiny of the record of the appellants it was observed that they have availed Cenvat credit on capital goods to the tune of Rs. 1,72,354/- vide Cenvat Entry No. 70/31-5-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, the Commissioner (Appeals), Central Excise, Pune upheld the order of the adjudicating authority confirming the demand and rejected the appeal. Hence the present appeal. 3. In order to better appreciate the relevant rules it is felt necessary to enumerate the facts as to the receipt of the capital goods and availment of the credit as per the following table. S. No Event Date Financial Yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar the capital goods were received. During the next financial year i.e. 2004-205, the assessee has availed 100% Cenvat credit for which the department has objected. The aforesaid rules in their implicit terms prohibit excess availment of Cenvat credit more than 50% in the first financial year in which capital goods are received and however, permits the total availment of the Cenvat credit during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the next financial year. But the ld. Commissioner (Appeals) misinterpreted the Tribunal's decision and rejected the appeal of the assessee holding that the Tribunal also permitted 50% of the Cenvat credit and not more than that. The Commissioner (Appeals) however appears to have failed in not taking note that the department has already allowed the first 50% of the Cenvat credit. Balance 50% of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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