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2016 (11) TMI 1220 - AT - Central ExciseCENVAT credit - whether appellant is eligible for CENVAT Credit availed on Capital goods when at the time of availing credit appellant was manufacturing only exempted product? - Held that: - at the time of availing credit, the appellant was manufacturing only exempted product, I have to agree that the contentions put forward by department holds merit. At the time of taking credit on capital goods i.e. December 2005 the appellant was manufacturing exempted product only. The Ld. Counsel for appellant has made a frail effort to rely upon sub-rule (2) of Rule 9 of Central Excise Rules, 2002 to canvass the proposition, that the appellant had taken Central Excise Registration, to manufacture of excisable goods, which would indicate that appellant had intention to manufacture dutiable goods later. Mere taking registration for manufacture would not make the appellants eligible to take credit on capital goods when the capital goods were exclusively used to manufacture exempted goods at the relevant time of taking credit. The crucial aspect to be considered is the use of the capital goods on the date on which credit is taken. Therefore the credit availed on capital goods in the month of December 2005 is not admissible. Credit not allowed - appeal dismissed - decided against assessee.
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