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2021 (8) TMI 799 - AT - Central ExciseCENVAT Credit - capital goods - denial on the ground that the final product is exempted from payment of duty and as per Rule 6(4) of the Cenvat Credit Rules, 2004 - HELD THAT:- The appellant is a manufacturer of cotton yarn and woven fabrics of cotton. It is also fact that the appellant is entitled for benefit of N/N. 29/2004-CE dated 09.07.2004 for their clearances at concessional rate of duty and N/N. 30/2004-CE dated 09.07.2004 without payment of duty if they do not avail cenvat credit on inputs. The N/N. 29/2004-CE dated 09.07.2004 was amended by Notification No. 58/2008-CE dated 09.07.2008 wherein the goods were exempted from payment of duty. The N/N. 59/2008-CE dated 07.12.2008 was also issued along with the N/N. 58/2008-CE dated 07.12.2008 which prescribed concessional rate of duty at the rate of 4% for clearance of the goods manufactured by the appellant, therefore, it cannot be said that during the period 07.12.2008 till 07.07.2009, the goods manufactured by the appellant were totally exempt from payment of duty. The said notification was also not brought on record by the Learned AR. Therefore, the version of Learned AR is totally mis-conceived and not according to the facts on record. The cenvat credit on capital goods during the impugned period cannot be denied to the appellant. Further, even if it is agreed that N/N. 29/2004-CE read with N/N. 58/2004-CE was considered which provided full, unconditional exemption notification up to 6.7.2009, capital goods credit would not have been available during that period. Once the duty became payable from 7.7.2009, the appellant was entitled to take credit on the capital goods used in the manufacture of the goods. No time limit has been prescribed for availing CENVAT credit on capital goods. As long as the capital goods in question were used in the manufacture of dutiable goods (post 7.7.2009), nothing stops the appellant from taking CENVAT credit even on the capital goods received earlier (up to 6.6.2009) but also used post 7.7.2009. Appeal allowed - decided in favor of appellant.
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