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2016 (2) TMI 989 - AT - Central ExciseDenial of CENVAT credit - services related to certain modernization and renovation activities of the existing factory premises - whether denial of CENVAT credit on the ground that goods have been cleared availing benefit of exemption Notification No.30/2004-C.E. dated 09.07.2004 and Notification No. 04/2006-C.E. dated 01.03.2006, justified? - Held that: - I find that the appellant have availed the CENVAT credit in respect of input services of renovation and modernization of their factory for in house manufacturing of partially oriented Yarn, on which they have discharged the Excise duty. As regard the exemption availed by the appellant under Notification No. 30/2004-CE, the said exemption was not availed an POY Yarn for which the renovation and modernization of plant was undertaken. Therefore the service on which CENVAT credit was taken mere not used for manufacturing of exempted goods. It is also admitted fact that the appellant have not cleared any goods under exemption during and after the renovation and modernization of plant of the appellant. With these undisputed fact, I do not see any reason why the CENVAT credit on the input services should not be allowed when the service is related to the manufacturing of dutiable goods - CENVAT credit allowed - appeal allowed - decided in favor of appellant.
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