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TMI Blog2020 (1) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... ratio of the said decision applies to the facts of the present case. Therefore, the balance 50% credit taken by the appellant before use of the capital goods, is not admissible. The capital goods were subsequently installed/put to use, the fact of which has also been acknowledged by the learned adjudicating authority in the impugned order. We also take note of the provisions of Rule 4(2)(b) of the Cenvat Credit Rules, 2004 (effective from 10.09.2004), in terms of which the condition of use was omitted - there is no time limit is stipulated under the Cenvat Scheme, for taking credit on capital goods, since as per the scheme, the balance credit can be deferred by an assessee to be taken in any financial year or years, subsequent to the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncial year(s), provided the capital goods were in the possession and use by the assessee. 3. In the case in hand, the appellant had availed the first instalment of 50% of credit on the same financial year, in which the capital goods were received. The balance 50% credit was availed by the appellant in the subsequent financial years, which was disallowed by the learned adjudicating authority vide the impugned orders, on the ground that the said credit was availed before installation/use of the capital goods, as provided under Rule 57AC of the erstwhile 1944 rules read with Rule 4 (2) of the Cenvat Credit Rules, 2002. 4. Against the impugned orders passed by the learned adjudicating authority, the appellant had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be open for the Tribunal to reiterate its own view after examining the fact and law. 6. Pursuant to the aforesaid order dated 30.01.2019 passed by the Hon ble High Court, the appeals were posted for hearing on 07.08.2019 before the Tribunal for deciding the issues afresh. 7. Shri S.C.Mohanty, learned Advocate for the appellants submitted that the dispute relates to the period 2000-01 to 2002-03 and that the subject capital goods have since been installed/used in the factory and to that effect installation certificates have been issued by the concerned technical persons. He has referred to Para 6.1 in the impugned order passed by the learned Commissioner to state that such installation certificate was su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the same was availed before the capital goods were put to actual use. The CBEC Circular No.267/26/2006-CX. dated 28.06.2006 was referred to in the adjudication order. The said circular clarifies that during the period from 01.04.2000 to 09.09.2004, the balance 50% Cenvat credit cannot be allowed in the subsequent year(s), unless the capital goods are put to use and mere possession is not enough. 11. We have perused the decisions cited and relied upon by the appellants, in support of its contention that credit of balance 50% is admissible. Even otherwise the credit stands admissible w.e.f. 10.09.2004, in terms of Rule 4(2)(b) of the Cenvat Credit Rules, 2004, under which the conditions of use appearing in the Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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