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2016 (2) TMI 635 - AT - Central ExciseCenvat credit of Central Excise duty paid on cement denied - Held that:- It is an admitted fact on record that the receipt of disputed goods in the appellant's unit and the duty paid character of those goods have not been disputed either in the Original or in the Appellate Order. Thus, denial of cenvat credit for mere technical lapse of non-obtaining the registration certificate at the time of issuance of invoice, cannot be a defensible ground to deny the cenvat credit. Thus, it is of the view that cenvat credit being a beneficial piece of legislation intended for arresting the cascading effect, cannot be denied to the appellant, in view of the fact that the disputed goods have suffered duty and have received/used in the appellant's factory for production of the final product. However, the cenvat credit of Central Excise duty paid on cement is not available to the appellant, owing to the fact that the same cannot be considered as input for manufacture/production of the final product. Thus, the appellant is liable to reverse the cenvat credit alongwith interest taken on cement. Since taking of cenvat credit on cement is not attributable to fraud, collusion etc. with intention to evade payment of duty, it is of the view that imposition of penalty is not justified. In view of the above, the appeal is partly allowed to the extent of allowing cenvat credit to the disputed goods other than cement taken by the appellant. The appellant is liable to reverse Cenvat Credit taken on cement and also to pay interest for wrongly availed Cenvat Credit.
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