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2010 (3) TMI 391 - AT - Central ExciseCenvat/Modvat- A show cause notice was issued to the Appellant for recovery of the Cenvat credit of Rs. 3,54,232/- alongwith interest and also imposition of penalty. The Asstt. Commissioner denied the capital goods Cenvat credit on the grounds that -(a) the capital goods were received in the factory during July’03 - June’04 period when Cenvat Credit Rules, 2002 (CCR, 2002) were in force but since the Appellant were not registered with Central Excise at that time, they were not eligible for Cenvat credit; and (b) when the appellant were not eligible for 1st instalment of capital goods Cenvat credit, the question of taking Cenvat credit of the balance amount does not arise. Held that- manufacture manufacturing excisable goods but exempt from registration formalities under Rule 9(1) for the reason that he is availing SSI exemption and the value of his clearances during the financial are within the full exemption limit, does not cease to be a manufacturer of excisable goods and therefore, capital goods Cenvat credit in terms of the provisions of Rule 3(1) read with Rule 4 of CCR, 2002 could not be denied to him for this reason. In view of the above discussion, the impugned order is not correct. The same is set aside. The appeal is allowed with consequential relief.
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