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TMI Blog2018 (8) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 01.03.2003. A Show Cause Notice dated 05.10.2007 was issued alleging that they have availed credit of duty and Service Tax paid on Input and Input Services and also availed the exemption benefit during the same period simultaneously. The Adjudicating authority confirmed the demand of duty of Rs. 8,09,829/- consisting of Input Credit of Rs. 6,70,250/- and Input Service Credit of Rs. 1,39,571/- alongwith interest and imposed penalty of equal amount of duty. By the impugned Order the Commissioner (Appeals) rejected the appeal filed by the appellant. Hence, the present appeal is filed before the Tribunal. 2. The Learned Advocate on behalf of the appellant argued the matter at length and also submitted synopsis of the main issues. He submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat- "A manufacturer who opts for exemption from the whole of the duty of excise leviable on goods manufactured by hum under a notification based on the value or quantity of clearances in a financial year, and who has been taking CENVAT Credit on inputs or input services before such option is exercised, shall be required to pay an amount equivalent to the CENVAT Credit, if any, allowed to him in respect of inputs lying in stock or in process or contained in final products lying in stock on the date when such option is exercised and after deducting the said amount from the balance, if any, lying in his credit, the balance, if any, still remaining shall lapse and shall not be allowed to be allowed to the utilized for payment of duty on any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll not avail the credit ........paid on inputs used in the manufacture of the specified goods", makes it clear that the inputs used in the capital goods, which were also used in the manufacture of specified goods, would not be allowed to CENVAT Credit. Therefore, the denial of the CENVAT Credit on inputs is justified. I find force in the submission of the Learned Counsel that it is a case of interpretation of the Notification and therefore, imposition of penalty is not warranted. Accordingly, the impugned Order is modified in so far as demand of CENVAT Credit on input along with interest is upheld. The demand of CENVAT Credit on Input Service and penalty are set aside. The impugned Order is modified accordingly. The appeal filed by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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