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2015 (10) TMI 2568 - HC - Central ExciseCENVAT credit on capital goods - Rule 6(4), with effect from 01.3.2003 - Notification No.8/2002-CE dated 1.3.2002 - Rule 57Q of erstwhile Central Excise Rules, 1944 - The first negative that is used in Rule 6(4) is that no CENVAT Credit shall be allowed on capital goods which are used exclusively in the manufacture of exempted goods. What follows the first part of the Rule 6(4) is the second negative, in the sense that the ineligibility to claim CENVAT Credit stipulated in the first part of Rule 6(4) is negatived or offset by what follows - What is clearly decipherable from the use of the expression "final product" and the definition of the expression "final product" is that the Rules do not make a distinction between a main product and a by-product - There is no dispute about the fact that these three products, namely soap stock, acid oil and wax were dutiable even on the date on which the appellant received the capital goods, namely April 2002 to March 2003 - to interpret Rule 4(2)(a) in a manner that will benefit a person, who receives the capital goods on the date, on which, the goods to be manufactured were dutiable, despite the same goods becoming exempted goods on the next day, but to deprive the benefit to a person, who manufactures dutiable goods on the basis of the capital goods received in a particular financial year, would not be a proper interpretation to the Rules - Decided in favor of the assessee.
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