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2016 (8) TMI 285 - AT - Central ExciseCenvat Credit on capital goods - use of capital goods in the manufacturing of exempted goods - The Department's contention is that once the appellant have not availed any input duty credit and they have become eligible for Notification No. 30/2004-C.E., they have no option but to avail of the exemption Notification 30/2004-C.E. only and they cannot opt from Notification No. 29/2004-C.E. and pay 4% the duty and in such a situation if any duty payment has been made, it would have to be treated as deposit and the clearances would have to be treated as clearances of fully exempted goods made under Notification Non 30/2004-C.E. and accordingly the appellant would not be eligible for capital goods Cenvat credit. Held that:– when two notifications available to assesse he can opt for most beneficial one – appellant cleared the goods by availing full duty exemption as well as on payment of duty - the capital goods cannot be treated as having been used exclusively in the manufacture of exempted goods - cenvat credit not denied – impugned order set aside – appeal allowed
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