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2019 (6) TMI 316 - AT - Central ExciseCENVAT Credit - capital goods - credit denied on the ground that at the time of procuring of capital goods, the appellant was availing Area Based Exemption under N/N. 50/2003-CE dated 10.06.2003 - Rule 4 (2) (a) of Cenvat Credit Rules, 2004 - HELD THAT:- If the capital goods have been procured by the assessee, he is entitled to take cenvat credit on the said capital goods to the tune of 50% of the credit in the financial year in which capital goods have been procured and remaining 50% in the next financial year. Further, in terms of Rule 4 of Cenvat Credit Rules, 2004 no cenvat credit shall be allowed on capital goods which are used exclusively manufacture of exempted goods or providing exempted services. In the case in hand after 27.11.2013, the goods manufactured by the appellant became dutiable as the exemption under Notification No. 50/2003-CE dated 10.06.2003 was expired. As per Rule 4 (2) (a) of CCR, 2004 the assessee is entitled to avail cenvat credit in the financial year in which the capital goods have been procured. Admittedly, in the case in hand, the appellant is taken cenvat credit on the capital goods for the same financial year when they were manufacturing dutiable as well as exempted final product, therefore, the appellant are entitled to avail cenvat credit in terms of rule 4 (2) (a) of CCR, 2004. Appeal allowed - decided in favor of appellant.
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