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2020 (12) TMI 634 - AT - Central ExciseCENVAT Credit - capital goods - production and clearance of dutiable goods takes place within two years from the date of commencement of production / installation of capital goods - applicability of amended rule 6(4) of CCR - goods exported under bond - exempt goods or not - HELD THAT:- On perusal of the amended rule 6(4) extracted supra, it is clear that no credit shall be allowed on capital goods used exclusively in the manufacture of the exempted goods or in providing exempted services for a period of two years from the date of commencement of the commercial production or from the date of installation of capital goods. In the instant case the fact that the capital goods are installed during 2016-17 is not disputed. The only dispute that is raised by the Revenue is that during 2016-17 the appellant has either cleared the goods availing the exemption under notification 30/2004 or exported the goods under bond under rule 19. It appears that the impugned order fails to take into consideration the amended rule which is very clear that credit is not admissible if the said capital goods are utilized exclusively in the manufacture of exempted goods for a period of two years from the date of commencement of commercial production or from the date of installation of capital goods. In the instant case, the capital goods are installed after commencement of production in the year 2016-17. The credit would have been inadmissible to the appellant if they have continued to clear exempted goods till 2018-19. However, records of the case indicate that the appellant has cleared goods on payment of duty during 2017-18 as evidenced by the ER-1 filed for the month of June 2017. Therefore, in view of the amended provisions the credit is admissible to the appellant. The appellant have also taken an alternative plea that goods exported under bond cannot be treated as exempted goods and therefore inspite of the fact that they have cleared only exempted goods during 2016-17 are cleared goods for export under Rule 19, credit is admissible - the provisions of amended rule being clear and the conditions thereupon have been fulfilled by the appellant and hence credit is admissible. Appeal allowed - decided in favor of appellant.
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