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2010 (12) TMI 727

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....e applicable duty and are availing cenvat facilities under Cenvat Credit Rules, 2004. During the scrutiny of monthly returns relating to the months of May, 2006 to September, 2006, December, 2006 to January, 2007, it was noticed that the appellants took Cenvat Credit on capital goods and cleared the capital goods 'as such' by reversal of such Cenvat Credit of an amount of Rs. 84,34,974/-. Further scrutiny revealed that the credit availed was pertaining to the capital goods which were procured by the assessee during the financial years 2000-01, 2001-02 & 2002-03 respectively. The Revenue officers came to the conclusion that the appellants having not informed the Department regarding the receipt of these goods in the factory premises could no....

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....Act, ibid read with Rule 15(3) of Cenvat Credit Rules, 2004. Hence this appeal. 3.1 Ld. Counsel appearing on behalf of the appellants submits that the duty paid by the appellants at the time of clearance of the capital goods itself has to be treated as reversal of alleged ineligible credit, if any, and there cannot be any further demand of the duty. It is his submission that there is no dispute as regards the receipt of capital goods in the factory premises; verification was done by the jurisdictional Range officer to the premises as regards the availability of the said capital goods; the capital goods which were intended for the power project could not be brought into effect due to business exigencies and the capital goods were clea....

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....dicating clearly the Cenvat Credit availed on the capital goods and utilization thereof for discharging the duty liability on the same capital goods removed 'as such'. It is his submission that an identical case of Coromandel Fertilizers Ltd. v. CCE [2009 (239) E.L.T. 99 (Tri. Bang.)], this Bench has held in their favour. He would also rely upon the decision of this Tribunal in the case of Grasim Industries Ltd. v. CCE [2004 (164) E.L.T. 348 (Tri. Del.)] as regards the eligibility to Cenvat Credit of the power plant used for generation of electricity and further used for producing or processing of final product. 4. Lt. Jt.CDR on the other hand would reiterate the findings of the ld. Commissioner. 5. We have considered the submis....

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....ods'. We also find that the Adjudicating Authority has sought to deny the Cenvat Credit only on the ground that credit was not availed immediately. We find that this Bench of the Tribunal in the case of Coromandel Fertilizers Ltd. (supra) has clearly held that "Further, we find that there was sufficient reasons for the appellants for not taking credit during the relevant period in view of the uncertainty in the matter. When the law is settled on the issue, there is no justification to deny the credit on the ground that it is availed after a long time. In any case, the Cenvat Credit Rules have not prescribed any outer time limit. In view of this, we do not find any merit in the impugned order. We set aside the same and allow the appeal with ....