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2017 (4) TMI 428 - CESTAT CHENNAICENVAT credit - debonding of EOU - Credit on imported capital goods, raw material and indigenous raw material at the time of de-bonding of a 100% EOU - Held that: - The specific inclusion of the proviso in respect of the capital goods meant that the cenvat credit should be extended only to that extent and applicability of the Cenvat Credit Rules to raw materials and inputs, at the time of bonding by necessary implication stood excluded. As regards the Cenvat Credit on raw materials on account of wastage involving ₹ 12,022/-, assessee had taken credit of ₹ 12,022/- on duty paid on account of wastage of raw materials. Any waste of raw materials cannot be inputs and are not used in final product. Further Rule 2(l) specifically states input means all goods used in the factory for the manufacture of final products. Accordingly, the assessee is not eligible to take Cenvat credit on such waste. As regard the admissibility of cenvat credit on imported capital goods, cenvat credit has been denied on the ground that the assessee did not produce TR-6 challan, bills of entries or invoices containing the details of duty payment - Held that: - The appellants have enclosed the copies of the official correspondences stating that (page 53 and 51 of the paper book) all the TR-6 challans in question were submitted to the department even before availing the cenvat credit. Since production of challans and eligibility thereof for cenvat credit on capital goods is a question of fact, which needs to be verified, the same is liable to be remanded to the adjudicating authority for verification. The order of the Commissioner is upheld in respect of duty, interest and penalty in relation to raw materials and waste - In respect of the capital goods, the matter is remanded back. On the issue whether the assessee is eligible to take credit on the basis of TR-6 Challans, the Commissioner (Appeals) has given no findings on the same, since the credit has been disallowed in respect of imported capital goods, raw materials and indigenous raw material. We agree with the Commissioner that the issue is superfluous in view of his disallowing the credit. Appeal allowed by way of remand.
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