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2015 (10) TMI 1162 - AT - Central ExciseDenial of CENVAT Credit - capital goods - reversal of credit on damaged parts being replaced - Held that:- Appellant received the machines and availed cenvat credit thereof. It was found that some part of the machine were damaged which was replaced by the supplier. There is no dispute that the appellant availed the credit on the entire machine which was received by them and used in the manufacture of final products. A portion of the parts was replaced cannot be reason for denial of the proportionate cenvat credit on the entire machine which was used in the manufacture of final product, as per provision of Cenvat Credit Rules. The main contention of the Learned Authorized Representative for the Revenue is that they have availed insurance claim in respect of the damaged parts. There is no material available that the appellant claimed insurance claim on the cenvat account. - denial of cenvat credit is not sustainable on merit. Hence, the impugned order is set aside - Decided in favour of assessee.
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