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2009 (2) TMI 191 - CESTAT, NEW DELHICenvat Credit on Capital goods – Apex court held that cutting of marble blocks into slabs did not amount to manufacture - Subsequent to the decision of the Hon’ble Supreme Court, the appellant stopped paying excise duty on the marble slabs. However, they had taken balance of 50% of the credit on the capital goods amounting of Rs. 4,22,802/- on 10-7-2004 and utilized the same towards payment of duty on other dutiable products cleared by them – held that - The decision holding that conversion of marble block to marble slab did not amount to manufacture laid down the law not only from 18-9-2003 but 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.
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