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2018 (9) TMI 631 - AT - Central ExciseCENVAT Credit - capital goods - angles, channel, CR coil, plates, etc. - Rule 2(a) of Cenvat Credit Rules, 2004 - Whether the appellant is entitled to avail Cenvat credit on inputs used in the fabrication of capital goods which are exempted from payment of duty in terms of Notification No.6/06-CE dt.1.3.2006 and Notification No.67/05-CE dt.16.3.1995 and further used in the manufacture of final products? Held that:- Explanation 2 to Rule 2(k) of Cenvat Credit Rules, 2004 is relevant to decide the issue. As per Explanation 2 to Rule 2(k), the inputs used in the manufacture of capital goods which are further used in the factory of manufacturer are entitled to avail Cenvat credit. Admittedly, in the case in hand, the inputs have been used by the appellant for fabrication of capital goods which are ultimately used in their factory for manufacture of final goods. In that circumstance, it is clear that in terms of Explanation 2 to Rule 2 (k), the appellant is entitled to avail Cenvat credit. Similar view taken in the case of HINDALCO INDUSTRIES LTD. VERSUS COMMISSIONER OF C. EX., BELGAUM [2008 (5) TMI 202 - CESTAT BANGALORE], where it was held that credit cannot be denied merely for the fact that steel tank are exempted under Notification No. 67/95. Thus, the appellant has correctly availed Cenvat credit on inputs i.e. steel items which have been used for manufacture of capital goods which are exempted from payment of duty and the said capital goods were further used in the manufacture of final products - appeal allowed - decided in favor of appellant.
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