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TMI Blog2005 (11) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... R, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. - The appellants are engaged in the manufacture of cement falling under Chapter 25 of the Central Excise Tariff and have availed Cenvat credit of duty in respect of inputs used in the manufacture of capital goods, which were further used in the factory in the manufacture of final product. The Revenue entertained a view that inasmu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the present appeal. 2. After hearing both the sides duly represented by Shri S. Sarkar, learned Consultant for the appellants and Shri S.S. Bhagat, learned SDR for the Revenue, we find that prior to introduction of new Cenvat Rules, Rule 57D(2) provided that credit of duty paid on the inputs shall not be denied even if such inputs are used in the manufacture of capital goods as defined i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the factory of the manufacturer. Similarly, Explanation 2 to Rule 2 of Cenvat Credit Rules, 2002 is to the effect that inputs include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer. We also take note of the various decisions relied upon by the appellants. In the case of Ritesh Trade Fin Ltd. v. CCE, Bolpur [2005 (191) E.L.T. 1065 (Tri. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the inputs, the appellants were within their option to pay duty on the capital goods and then again to avail Modvat credit of the duty so paid, which could have been utilised by them towards payment of duty on the final product. Thus, in essence, the entire exercise is only paper based and revenue neutral. 5. In view of the foregoing, we set aside the impugned order and allow the appeal wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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