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2017 (3) TMI 500 - AT - Central ExciseCENVAT credit - manufacture of plain laminated particle board falling under Chapter 44.06 of Central Excise Tariff - denial of credit on the ground that the finished goods were cleared under Nil rate of duty in terms of Rule 6(1) of CCR, 2002, credit of duty paid on input which is used in the exempted goods is not admissible - interest - penalty - Held that: - whatever stock of input as such lying in stock as on 4-2-2004, appellant is not entitle for the Cenvat credit. Accordingly credit is admissible for ₹ 14,91,737/- in respect of input contained in WIP and for ₹ 7,19,986 contained in finished goods - As per closing stock on 3-2-2004 the credit in respect of input of ₹ 5,33,499/- lying in stock as such is not admissible - since majority of amount of Cenvat credit is admissible, I do not find it proper to uphold the penalty of ₹ 1 lakh imposed by the Commissioner(Appeals), therefore penalty is set aside - on the inadmissible Cenvat credit in respect of input lying in stock, appellant is liable to pay the interest - appeal disposed off - decided partly in favor of appellant.
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