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2022 (6) TMI 379 - HC - Central ExciseCENVAT Credit - capital goods procured and installed by the assessee for the purpose of manufacture of the said goods which are exempted from payment of duty - interpretation of Rule 6(4) of the CENVAT Credit Rules, 2004 - HELD THAT:- On perusal of Rule 6(4) of CENVAT Credit Rules, 2004 which is absolutely clear that if capital goods are used for manufacture of dutiable goods within a period of two years from the date of commencement of commercial production or from the date of installation as per proviso, the same will be entitled for CENVAT Credit. It is relevant to consider that in light of Section 37 of the Act of 1944, the CENVAT Credit Rules, 2004, are framed with the beneficiary intention and to give exclusive effect of duty paid under the VAT regime of Taxation. The legislature in its wisdom has exclusively specified in Rule 6(4) of the CENVAT Credit Rules, 2004 that the credit upon capital goods will not only be debarred and restricted but also not allowed when the same are exclusively used for manufacture of exempted goods for a period of two years from the date of installation/commencement of production. In the case in hand, as per ER-1 return from the month of June- 2017, it is an admitted fact that the appellant had cleared the goods on payment of duty within period of two years. Further, the provisions of CENVAT Credit Rules, 2004 have to read in totality. On analysis of CENVAT Credit Rules, 2004 particularly Rule 6(6)(v) which are explanation to Rule 6(4), this court finds that in the year 2016-17 the goods were exported under bond. It is also true that in terms of Notification No.30/2004-CE dated 09.07.2004 option was exercised for exemption in the year 2016. The said fact does not debar the respondents from availing the credit. Provisions of Rule 6(4) read with Rule 6(6)(v) of the CENVAT Credit Rules, 2004 gives a time of two years to avail CENVAT Credit. This court finds that no Substantial Question of Law arises in the present matter - Appeal dismissed.
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