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2019 (7) TMI 782 - AT - Central ExciseCENVAT Credit - capital goods - credit for the period when the goods manufactured by the appellant are taxable and whether the same lapses subsequently when the appellant had availed SSI exemption? - period March, 2003 to June 2004 - HELD THAT:- On a cogent or harmonious reading of various provisions, it is evident that what lapses on the date the asssessee avails SSI exemption, is only cenvat credit related to input or input services - This view was fortified by the provisions of Rule 6(4) of CCR, which provides that an assessee is entitled to take cenvat credit on capital goods even during the period, they were availing SSI exemption. However, under Clause (IV) in para 2 of the SSI exemption notification, the utilisation of such cenvat credit taken on capital goods during the period of enjoying the SSI exemption is suspended. The CENVAT credit of capital goods does not lapse and was rightly availed by the appellants and subsequently, utilised when they stopped availing the SSI exemption. Appeal allowed - decided in favor of appellant.
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