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2017 (1) TMI 918 - AT - Central ExciseCENVAT credit on Capital goods - denial on the ground that w.e.f. 02/01/2006, assessee were manufacturing exempted goods from the said capital goods - Held that: - the capital goods were capable of being used even before installing the entire range of capital goods. It is undisputed fact that the capital goods were received when the appellant was paying Central Excise duty on the clearances and that the capital goods were used for the manufacture of excisable goods on which duty was paid. The appellant opted to avail the benefit of said N/N. 50/2003-CE w.e.f. 02/01/2006. Before 02/01/2006, the said capital goods were used for manufacture of dutiable goods. The ratio of 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] is squarely applicable in the facts and circumstances of the present case where it was held that the eligibility of Cenvat credit is to be determined with reference to the dutiability of the final product on the date of receipt of capital goods. In the present case the capital goods were received when the dutiable final products were being manufactured. Therefore, in the present case Cenvat credit was admissible to the appellants. Appeal allowed - decided in favor of appellant.
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