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2012 (4) TMI 534 - AT - Central ExciseCENVAT Credit - LDO and HSD - Held that:- Credit of duty paid on input and Capital goods is admissible under the Cenvat Credit Rules. The terms input and Capital goods are defined in the Rules in clause (g) of Rule 2 of Cenvat Credit Rules, 2002 (subsequently clause (k) of Rule 2 of Cenvat Credit Rules 2004). High Speed Diesel and Motor Spirit were specifically excluded from the definition of input right from the inception. Light Diesel Oil (LDO) was added to the exclusion list vide Noti.No.13/2003 CE(NT) dt.01.03.2003. W.e.f. 01.03.2003, LDO along with Diesel and Motor Spirit are items outside the definition of inputs. Explanation 1 to the clause leaves no doubt whatsoever that LDO, High Speed Diesel Oil and Motor Spirit shall not be treated as input for any purpose whatsoever. The provisions of Cenvat Credit Rules (w.e.f. 01.03.2003) exclude HSD and LDO from the definition of input in unequivocal terms and there is no ambiguity or confusion in the provisions. Intent, purpose and object of the amendment are clear that Government modified the rules to bar credit on LDO by excluding it from the inputs as defined under the cenvat credit Rules irrespective of its use. HSD always remain outside the ambit. - hat an item is used in the manufacture of final goods is not sufficient to define it as input. Motor Spirit, High speed Diesel and LDO are specifically excluded from the purview of inputs. Even if HSD and LDO is used in the manufacture of final goods, it cannot be considered as input for purpose of credit under the Rules ibid. When an item has been specifically excluded from the definition, the usage criterion cannot bring it in the ambit of definition - Decided against assessee.
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