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2010 (11) TMI 815 - AT - Central ExciseCENVAT credit on capital goods used in the manufacture of exempted goods wrongly availed - Demand duty, interest and penalty – Held that:- Proviso to Notification No. 30/2004, dated 9-7-2004 there was no bar to the availment of exemption under Notification No. 30/2004 by a manufacturer availing capital goods credit. This apart, Rule 6(4) of the CENVAT Credit Rules, 2004 bars availment of credit on capital goods used exclusively in the manufacture of exempted goods, while in the present case, the duty on cotton yarn is an optional one enabling a manufacturer to clear the goods either without payment of duty or on payment of duty, it cannot be said that capital goods are exclusively used in the manufacture of exempted goods. The assessees paid duty subsequently, namely, during the month of August, 2008 on cotton yarn in terms of Notification No. 29/2004-C.E., dated 9-7-2004 and, therefore, the availment and utilisation of credit for paying duty on capital goods is in accordance with law. order upheld and appeal rejected
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