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2009 (9) TMI 545 - AT - Central ExciseTextiles and textile article- The appellants are manufacturer and exporters of synthetic yarn falling under Chapter Headings No. 55.09 and 55.01 of the Central Excise Tariff Act, 1985. During the course of scrutiny of ER-1 returns filed by the appellants, it came to the notice of the Department that the appellants had not reversed the credit availed on the Furnace Oil. The furnace oil was one of the inputs used in the manufacture of steam for generation of power which in turn was being used in the manufacture of final product by the appellants. In spite of such failure to reverse the credit of duty till clearance of the final product, the appellants had sought to claim the exemption in terms of the Notification No. 30/2004-C.E., dated 9-7-2004 in relation to the specified goods classifiable under Headings No. 5509 and 5510. The Notification clearly imposed a condition that the benefit thereunder could not availed in respect of the goods for which credit of duty on inputs had been taken under Cenvat Credit Rules, 2004. The dispute relates to the denial of benefit under the Notification No. 30/2004-C.E., dated 7th July, 2004. Held that- benefit of notification no. 30/204-C.E. denied as furnance oil used in generation of steam for power and credit availed on it was not reversed till clearance of final product. Thus, the appeal has dismissed.
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