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2017 (5) TMI 1129 - AT - Central ExciseCENVAT credit - area based exemption - N/N. 50/2003-CE dt. 10.1.2003 w.e.f. 30.10.2004 - denial of credit on the ground that clearances effected under the said notification are not required to pay any duty, therefore, they are not entitled to take any credit - Held that: - the goods produced by the respondents are mentioned in the first schedule to the CETA, 1985. It is not the case of the respondents that the final products manufactured by them falls in Annexure-I appended to the notification. Therefore, the contention of the respondents, that the goods manufactured by them are not specifically exempted is completely erroneous. Since the final products manufactured by the respondent are specified in the notification and the same is cleared from the unit located in the specified zone, the goods manufactured by the respondents are exempted goods. Since the only final product manufactured by respondents are held to be exempted goods, the benefit of CENVAT Credit is not eligible in the terms of Rule 6(1) of CCR, 2004. It is not the case of the respondents that they are manufacturing dutiable as well as exempted goods - the respondents are entitled to keep the credit on inputs as on 30.10.2004 for payment of duty as and when such a need arises - appeal allowed - decided in favor of Revenue.
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