9911796707
TMI Blog2007 (4) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-2000 and started production on 30-9-01. After crossing the small scale exemption limit, they started paying duty from January, 2002 and availed the entire credit of duty paid on the capital goods. The lower appellate authority has restricted the credit to 50%. Hence this appeal. 2. The ld. DR, Shri P.K. Das, who has incidentally passed the impugned order-in-original, supports the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not allow to a manufacturer the entire duty credit in the first year, in which the capital goods are received and the credit is restricted to an amount not exceeding 50%. In view of the fact that there is a maximum limit of 50%, a manufacturer has the liberty to utilize any amount of credit below that percentage or not avail any credit at all in the first Financial Year. Rule (2)(b) allows a m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e absence of any restriction regarding utilization of the balance credit in the second Financial year under Rule 4(2)(b), the appellants are entitled for availing of the entire credit of the duty paid on capital goods in the second Financial year. 5. In view of my findings as above, the impugned order is set aside and the appeal is allowed with consequential benefit to the appellants. (Dictated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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