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2019 (9) TMI 885 - AT - Central ExciseCENVAT Credit - use of capital goods in the manufacturing of exempted goods - benefit of N/N. 30/2004-CE. availed - contention of the department is that since at the time of receipt of capital goods, the appellant was manufacturing exclusively exempted goods with the help of the said warping machine, they are barred from availing the Cenvat Credit on such capital goods - HELD THAT:- As per the facts of the present case, though the appellant received and installed the capital good in their running unit in August, 2015 but before completion of two years, in August, 2017 the capital good was used for manufacture of goods which were cleared on payment of duty, availing the exemption notification 29/2004-CE. Therefore, the capital goods were not used continuously for two years for manufacture of exclusively exempted goods. Since the amendment is by way of substitution, it will be applicable from the retrospective effect. Tribunal in various judgments, under the same set of facts and dispute related to N/N. 29/2004-CE and 30/2004-CE, held that even though initially ‘Nil’ rate of duty exemption under N/N. 30/2004-CE has been availed and subsequently, Notification No. 29/2004-CE availed and paid the duty, the Cenvat Credit on capital goods is admissible. Cenvat Credit on the capital goods is admissible - Appeal allowed - decided in favor of appellant.
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