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2023 (3) TMI 885 - AT - Central ExciseCENVAT Credit availed on plant and machinery used in the manufacture of coke briquettes - capital goods have been used in the manufacture of exempted goods i.e. briquette classified under Tariff Item 2701 20, which attracts NIL rate of duty - eligibility under Rule 6 (4) of the Cenvat Credit Rules, 2004 - HELD THAT:- There is no dispute that even though plant and machinery on which credit was availed as capital goods though they were used in the manufacture of bricks which in turn used in the manufacture of final product i.e. soda ash and the same was cleared on payment of duty. In this fact, in the considered view it cannot be said that the capital goods were used exclusively for manufacture of exempted goods. This is for the reason the process of manufacture of soda ash is consist of various processes and the entire process is considered to be the process of manufacture of Soda ash which is indeed cleared on payment of duty. Therefore, the provision of Rule 6 (4) of CCR is not applicable in the present case. The said provision is applicable only when the final product in which the capital goods is used is exclusively, cleared under exemption. Reliance placed in the case of ISPAT METALLICS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, RAIGAD [2005 (7) TMI 225 - CESTAT, MUMBAI] where it was held that The word “used” can denote be intermittent and/or use sometime in future; we find that both sides agree that the appellants are a manufacturer of declared final products Iron and Steel and have the capacity or potential to use iron ore fines also. Therefore credit as over led cannot be denied. In view of the above judgment, an identical issue has been considered that only because the capital goods is used for exempted intermediate goods, the cenvat credit cannot be denied when the final product is cleared on payment of duty. The appellant is entitled for cenvat credit on capital goods in the given facts of the present case - Appeal allowed.
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