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TMI Blog2009 (2) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... ut that was the law for the period prior to 18-9-2003. In other words, the levy of duty on marble slabs arising out of marble block was not legal. Similarly, the credit taken on the capital goods used in conversion of marble block to marble slab is also not legal. Under these circumstances, there is no right vested on the appellant to take credit of duty paid on the impugned capital goods – recovery confirmed. - E/1900/2007 - 196/2009-SM(BR)(PB), - Dated:- 13-2-2009 - Shri M. Veeraiyan, Member (T) Shri V.N. Shukla, Advocate, for the Appellant. Shri Sansar Chand, Advocate for the Respondent. [Order].- This is an appeal against the order of the Commissioner (Appeals) 233/HKS/CE/JPR.II/2007 dated 23-3-2007. 2. Heard both s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the capitat goods. Since they were paying duty till 17-9-2003 the duty paid on capital goods received by them was eligible as credit. It is a matter of procedure that the first 50% was allowed to be taken in the first financial year and the balance was allowed to be taken in the subsequent financial year. The right to credit having accrued, the subsequent development of the goods not being subjected to duty is not relevant. Since they have manufactured other dutiable products like tiles, balance credit taken by them in July, 2004 and utilized should be held legal. 4.2 He relies on the decision of the Tribunal in the case of Brindavan Beverages Pvt. Ltd. v. CCE, Meerut-II - 2008 (232) E.L.T. 475 (Tri.-Del.). 5. Learned DR reitera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on capability but based on use in the manufacture of dutiable goods. These conditions are required to be fulfilled at the time of receipt of the capital goods which is the relevant time. Subsequent developments cannot influence the eligibility. For example, the status of the goods manufactured may change from dutiable to exempt and vice versa. If the final products are dutiable when the capital goods are received and Later on they get exempted then the credit taken on capital goods need not be reversed. Similarly the condition relating to capability to use the capital goods for manufacture should be considered at the time of receipt of the capital goods. In this case, admittedly the plant was not usable without modification for the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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