TMI Blog2011 (3) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal were justified in coming to the conclusion to which they have come, it is based on legal evidence and does not suffer from any legal infirmity - Decided in favour of assessee. - 67 of 2008 - - - Dated:- 7-3-2011 - N. Kumar and Ravi Malimath, JJ. REPRESENTED BY : Shri C. Shashikantha, Advocate, for the Appellant. Shri B. Anil Kumar, Advocate, for the Respondent. [Judgment per : N. Kumar, J.]. This appeal is filed by the revenue challenging the order passed by the Tribunal [2008 (229) E.L.T. 78 (Tribunal)] which has held that Cenvat Credit cannot be denied on the capital goods when admittedly it is not used exclusively in the manufacture of exempted goods. 2. The assessee - M/s. Rajashri Packagers Limited are e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and therefore the said machinery is exclusively used in the manufacture of exempted products. Once the new plant is connected to the old plant, the entire unit has to be looked upon as a whole in view of the fact that all these goods are used in the premises of the same factory. By-products emerge at various stages and these are cleared on payment of duty. Therefore, it was held that the capital goods are used exclusively for production of exempted goods and consequently the assessee is entitled to the Cenvat Credit. Aggrieved by the same, the revenue is in appeal. 5. Learned counsel for the revenue assailing the impugned order contends that, in view of the report of the original authority who visited the factory, saw with his eyes the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Even before the Appellate Authority as well as before us, the chart showing the various stages of manufacturing process is produced. It discloses that there are roughly 10 stages between the first stage of mixing crude oil with palm oil and the last product vanaspati coming out. It is not in dispute that all these processes are not conducted in the new machinery. Some of the processes are conducted in the old machinery in which time the by-products emerge after the partial processing of crude oil and palm oil in the old machinery which gets into the new machine. After several stages of process in the new machinery, the final product vanaspati emerges at the end. The assessing authority who visited the spot has not stated that the entire pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, 2004 which reads as under :- No Cenvat Credit shall be allowed on capital goods which are used exclusively in the manufacture of exempted goods or in providing exempted services, other than the final products which are exempt from the whole of the duty of excise leviable thereon under any notification where exemption is granted based upon the value or quantity of clearances made in a financial year . 9. Therefore, stress is on user of the capital goods exclusively in the manufacture of exempted goods. The new capital goods in respect of which Cenvat Credit is claimed from the facts of the case it is clear is not exclusively used in the manufacture of exempted goods. The said machinery is used in the manufacture of exempted goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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