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2016 (8) TMI 1020 - AT - Central ExciseEligibility - credit on capital goods and area based exemption notification no. 50/2003-CE dated 10.06.2003 - manufacture of sugar and molasses - undertaken substantial expansion of their existing capacity in 2005 - availed Cenvat Credit from 21.04.2006 to 06.07.2005 - on 15.11.2005 onwards started availing exemption under notification 50/2003-CE - Held that:- no legal basis found in such assertion of Revenue that when the respondent is aware that they are going to claim full exemption of their final product based on notification no. 49/03 and 50/03, they should not have availed credit. It was contended by the Revenue that the respondent postponed the availment of area based exemption only to avail credit on capital goods. but when the credit eligibility on capital goods are determined on applicable legal provisions, other presumptions or alleged motive of the respondent are of no consequence. Therefore, by referring to the decision of Hon’ble Supreme Court in the case of CCE Vs. Dai Ichi Karkara Ltd. [1999 (8) TMI 920 - SUPREME COURT OF INDIA], Tribunal’s decision in the case of Hindustan Coca Cola Beverages (P) Ltd. Vs. CCE [2005 (7) TMI 387 - CESTAT, MUMBAI] and Kerala High Court’s order in the case of CCE Vs. Premier Tyres [2001 (2) TMI 137 - HIGH COURT OF KERALA AT ERNAKULAM], and as there is no valid legal ground in the present appeal for denying the credit on capital goods, no merit found in appeal filed by Revenue. - Decided against the Revenue
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