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TMI Blog2016 (8) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... ealt the issue in favour of the appellant assessee. It interpreted Rule 4(2) of CCR, 2004, that it is not necessary that the capital goods be put to actual use for the manufacture of final product, only such goods should be in possession and use of the manufacturer of a final product. Rule envisages availability of Cenvat credit to a manufacturer on receipt of capital goods once the goods are received and as long as such goods are in possession and use of the manufacturer of final product. Appeal allowed by way of remand - E/41442/2015 - FINAL ORDER Nos. 41019/2016 - Dated:- 10-6-2016 - Shri P.K. Choudhary, Judicial Member Shri M. Kannan, Adv., For the Appellant Shri R. Subramaniyan, AC (AR) For the Respondent ORDER M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir case is not a case of availment of ineligible credit but incorrect availment of credit. This is a mistake and there is no deliberate intention to avail ineligible credit. He further submits that since the credits sought to be disallowed is available, there could be recovery of interest for availing additional 50% credit in the first year instead of subsequent year. He relies on the judgement of the Hon ble High Court of Gujarat in the case of CCE Vs. Indian Oil Corporation Ltd. - 2014 (305) ELT 507 (Guj.) in support of his contention. He submits that the issue has been settled by the above judgement and it squarely applies to the facts of their case. Hence, he prays to set aside the impugned order and render justice. 3. Ld. AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the entire 100% credit in the first year will not make balance 50% as non-available to the appellant. In the case law relied upon by the Ld. Advocate, CCE Vs. Indian Oil Corporation Ltd., the Hon ble Gujarat High Court has dealt the issue in favour of the appellant assessee. It interpreted Rule 4 (2) of CCR, 2004, that it is not necessary that the capital goods be put to actual use for the manufacture of final product, only such goods should be in possession and use of the manufacturer of a final product. Rule envisages availability of Cenvat credit to a manufacturer on receipt of capital goods once the goods are received and as long as such goods are in possession and use of the manufacturer of final product. Hence, it is proper ..... X X X X Extracts X X X X X X X X Extracts X X X X
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