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2016 (11) TMI 913 - AT - Central ExciseCENVAT credit - capital goods which was not installed and used in the factory - Subsequently the capital goods exported under drawback in terms of Section 74 of the Customs Act, 1962 - whether the denial of CENVAT credit on the ground that the capital goods was not put to use in the factory and cleared as such in terms of Rule 3(5) of the Cenvat Credit Rules, 2004, justified? - Held that: - the capital goods on which credit was availed, if it is cleared for export there is no need to reverse the Cenvat credit. As regard the drawback claim by the appellant, the appellant is not entitled for the drawback in respect of the Cenvat Credit availed by them. It is observed from the record that the appellant has proposed to reduce the drawback claim to the extent of Cenvat Credit availed by them and the same has been confirmed by the drawback department in their letter. For this reason credit cannot be denied on the ground that the appellant have made a claim of drawback - the appellant is legally entitled for the Cenvat Credit and need not to reverse the Cenvat Credit on the export of capital goods - appeal allowed.
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