HINDUSTAN ZINC LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE appellant filed this appeal against order -in -appeal passed by the Commissioner (Appeals). In this case the appellant availed the benefit of Modvat credit in respect of capital goods in the month of April 2000. A show cause notice was issued to the appellant on the ground that as per the provisions of Rule 57AB of Cenvat Credit Rules the manufacturer can take credit only in respect of 50% duty paid on capital goods in a financial year and in the subsequent financial year the assessee can take credit on remaining amount of 50% of duty.

(3.) THE contention of the appellant is that the credit taken on April 2000 in respect of the capital goods which were received in the month of March 2000 and they had taken credit in view of the provisions of Rule 57AG of Cenvat Credit Rules.