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2014 (6) TMI 386 - AT - Central ExciseCENVAT credit on Capital goods - credit of additional customs duty - composite block making plant - shot blasting machine - Since CENVAT Credit was not admissible Assessee revered the credit - Refund claim filed for take back the credit - Revenue entertained a view that appellant was not eligible for CENVAT credit in respect of shot blasting machine which was part of the block making plant but was exclusively used for finishing the pavers manufactured by the appellants. The pavers manufactured by the appellants were exempt from payment of duty if more than 25% of furnace slag was used and the appellant was availing this benefit from March 2008 - Held that:- even though the machine is part and parcel of block making plant, its utility is basically for finishing pavers only. Therefore, it cannot be said that Department was wrong in entertaining a view that CENVAT credit in respect of shot blasting machine and the eligibility for the same can be considered separately. - Decided against the assessee. Regarding subsequent use in dutiable goods - Held that:- Appellant took the credit in September 2008 whereas the clearance of dutiable product started from March 2009. - at best, they can be asked to pay the interest which is applicable for the period from September 2008 to March 2009 when they started to manufacture goods which suffered duty. - Otherwise, the issue is covered by the decision of Hon’ble High Court of Gujarat in the case of CCE&C, Vadodara-II Vs. Gujarat Propack [2008 (9) TMI 170 - GUJARAT HIGH COURT] - assessee allowed to take back the credit - Decided partly in favor of assessee.
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