COMMNR. OF CENTRAL EXCISE, BHAVNAGAR vs M/S. SAURASHTRA CHEMICALS LTD.

The Supreme Court interpreted Rule 57AC of the Central Excise Rules, 1944, holding that manufacturers can claim CENVAT credit on capital goods received but not installed before April 1, 2000, subject to specific conditions. The Court clarified that credit can be taken for 50% of the duty paid in the financial year 2000-2001, with the balance in subsequent years, provided the goods are still in use. The appeal was allowed, affirming the High Court's decision regarding the eligibility for CENVAT credit under the revised rules.