9911796707
TMI Blog2004 (3) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... rejected the appeal and upheld the order of the lower authority, who demanded Rs. 97,062/- availed as credit on the capital goods received by them and imposed a penalty of Rs. 5,000/- on the company. 2. Briefly the facts are that the appellant was availing of credit of Cenvat on capital goods under Cenvat Credit Rules, 2001/2002. The appellant availed of the Cenvat based on duty paying documents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Rule 4(2)(a) (h) of Cenvat Rules, 2001, as it existed at the relevant time, is reproduced below :- "(a) The Cenvat credit in respect of capital goods received in a factory at any point of time in a given financial year shall be taken only for a amount not exceeding fifty per cent of the duty paid on such capital goods in the said financial year. (h) The balance Cenvat credit may be taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. Thus, the provisions of the Rule, in this given situation, would have resulted in taking only 50% of credit of the duty paid on the capital goods even though duty was paid in full on the capital goods. The intention of the legislature could not have been to defeat the object of the Cenvat Rules. 6. The above Rule underwent a change w.e.f. 1-3-2002. Proviso to Rule 4(2) of the Cenvat Rules, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2001 which came into effect from 1-7-2001. Rule 57Q(1) permitted taking of full credit (100%) of the duty paid on the capital goods if such capital goods are removed from the factory wherein they were received in the same financial year. This position would therefore add credence to the theory that what was specifically allowed before and after should be deemed to have been allowed during the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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