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2019 (1) TMI 618 - AT - Central ExciseCENVAT Credit - capital goods and inputs were exclusively used in the manufacture of exempted grain base ENA/rectified spirit as also dutiable goods - Rule 6 of the Cenvat Credit Rules - Held that:- The rectified spirit so manufactured, are captively used by the appellant for manufacture of dutiable product i.e. denatured spirit. The storage tanks installed in the factory to store Extra Natural Alcohol were used for denaturing process, as per the market requirement. Since denaturing process takes place, while Extra Natural Alcohol were stored in the storage tank, it cannot be concluded that those storage tanks were used exclusively for manufacture of the exempted/non-excisable goods. Further, Extra Natural Alcohol is an intermediate product, which is used for manufacture of the denatured alcohol - denial of Cenvat benefit of central excise duty paid on capital goods is not proper and justified. Further, DDHS and Barli are not the final product manufactured by the appellant. Since, those products emerged during the course of manufacture of alcohol i.e. both dutiable as well as exempted, it will not be appropriate to deny the benefit of Cenvat Credit availed of capital goods used in the manufacture of such waste product. CENVAT credit - input services - construction service - Held that:- The Learned Commissioner (Appeals) vide paragraph 7 in the impugned order has held that the appellant had not extended any argument regarding availment of such credit. Also, from the appeal records that the appellant has not made any specific grounds in support of its claim that it is entitle for the benefit of input service credit used in the construction activities. Therefore, in absence of proper substantiation of the issue, the impugned order denying the Cenvat benefit on input service amounting to ₹ 7,51,900/- cannot be interfered with at this juncture - the appellant is liable to pay/reverse Cenvat Credit on the input services used for the construction services and original order confirming the adjudged demand on such count is sustainable. Appeal allowed in part.
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