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2016 (8) TMI 785 - AT - Central ExciseCenvat credit - availed CENVAT credit on capital goods and services received by them during the period 01/04/2005 to 28th of February 2006 - asbestos cement sheets were chargeable to nil rate of duty up to 28/02/2006 but w.e.f. 1st of March 2006 the goods became chargeable to duty at the rate of 8% - Held that:- there is no doubt that at the time of receipt of capital goods, the final products of the appellant were chargeable to nil rate of duty and therefore these capital goods fall within the purview of sub rule 4 of rule 6 and hence not entitled to Cenvat credit. The only weak argument advanced by the appellant is that the credit has been taken in the same financial year in which their final products became dutiable. We find that this is not a valid reason to permit such credits. By applying the decision of Larger Bench of this Tribunal in the case of Spenta International Ltd versus Commissioner of Central Excise, Thane [2007 (8) TMI 25 - CESTAT, MUMBAI], since on the date of receipt of capital goods, the final products were chargeable to nil rate of duty, the appellant becomes in-eligible for availing the credit of duty paid on the capital goods. - Decided against the assessee.
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