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2014 (8) TMI 913 - AT - Central ExciseDenial of CENVAT Credit - Cenvat Credit availed by the respondent on MS Bar, CTD bars, beams etc. which was used by the respondent for setting up the klin cooler and chimney in their factory - Revenue is of the view that these items does not cover under Rule 2(k) of the CENVAT Credit Rules, 2004, therefore, the respondents are not entitled for input credit, therefore the show-cause notice was issued, the matter was adjudicated, and demand was confirmed by the Adjudicating Authority along with interest and equivalent amount of penalty - Held that:- There is no doubt that the larger bench of the Tribunal has held that the explanation amended in 2009 of Rule 2(k) of CENVAT Credit Rules, 2004, is clarificatory. Despite that, the Hon'ble Apex Court in Rajasthan Spinning & Weaving Mills Ltd. (2010 (7) TMI 12 - SUPREME COURT OF INDIA) held that Cenvat credit on the above said items is available if same has been used for setting up capital goods. The decision of the Hon'ble Apex court will prevail over the decision of the Larger Bench of the Tribunal. Therefore, following the decision of the Rajasthan Spinning & Weaving Mills Ltd. (supra), I hold that the respondent are entitled for Cenvat Credit on the items in dispute during the impugned period, which has been used for setting up capital goods i.e. kiln, cooler and chimney. - Decided against Revenue.
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