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2015 (10) TMI 846 - AT - Central ExciseCENVAT Credit - Capital goods - initially used for exempted goods - later used for dutiable goods also - Held that:- Expression exclusively used “also includes intention to use” as provided under Rule 6(4) of the Cenvat Credit Rules. As the appellant had admittedly informed the Revenue at the time of commencement of production that it will utilize the said machinery installed for manufacture of both dutiable and non-dutiable products, it cannot be said that the said machinery is exclusively used for manufacture of the exempted goods. Capital goods in question have a life over several accounting years and as such the intention at the time of installation is also the relevant factor. For the temporary use for few months in manufacture of only exempted goods will not disable the assessee in availing the CENVAT Credit and utilizing the same for manufacture of dutiable goods. It is also an admitted fact that the CENVAT Credit so availed have been utilized only after Nov. 05 whereas the production of dutiable goods started admittedly in June, 05. Thus, I hold that the respondent assessee is entitled to CENVAT Credit on the capital goods in question - Decided against Revenue.
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