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2018 (9) TMI 169 - AT - Central ExciseCENVAT Credit - capital goods - goods manufactured by them was cleared by availing the exemption under N/N. 30/2004-CE dated 09/07/2004 - Department was of the view that the appellant will not be entitled to the benefit of the credit on capital goods in view of the Rule 6 (4) of the Cenvat Credit Rules, 2004 which bars the availment of credit on capital goods used exclusively in the manufacture of exempted goods. Held that:- Admittedly, such capital goods have been predominantly used for manufacture and clearance of finished products without payment of duty by availing the exemption as per N/N. 30/2004 ibid. But the fact remains that a small portion of the finished products has in fact been cleared on payment of duty without availing said exemption. The Tribunal in the case of Commissioner of Central Excise, Maduari V/s Eastman Spinning Mills Pvt. Ltd [2010 (11) TMI 815 - CESTAT, CHENNAI] had occasion to consider a similar case in which the Tribunal has held that there was no bar to the availment of exemption under Notification No. 30/2004 by a manufacturer availing capital goods credit. Thus, it cannot be said that the capital goods have been exclusively used in the manufacture of exempted goods. Consequently, the bar specified Rule 6 (4) will not be applicable - appeal dismissed - decided against Revenue.
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