TMI Blog2018 (9) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... portion of the finished products has in fact been cleared on payment of duty without availing said exemption. The Tribunal in the case of Commissioner of Central Excise, Maduari V/s Eastman Spinning Mills Pvt. Ltd [2010 (11) TMI 815 - CESTAT, CHENNAI] had occasion to consider a similar case in which the Tribunal has held that there was no bar to the availment of exemption under Notification No. 30/2004 by a manufacturer availing capital goods credit. Thus, it cannot be said that the capital goods have been exclusively used in the manufacture of exempted goods. Consequently, the bar specified Rule 6 (4) will not be applicable - appeal dismissed - decided against Revenue. - Appeal No. E/51789/2018-SMC - Final Order No. 52896/2018 - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He submitted that the appellant has availed the cenvat credit on capital goods. But use of such capital goods was for manufacture of goods which were cleared without payment of duty under Notification No. 30/2004. The act on the part of the respondent by clearing a negligible quantity of only 410 Meter of fabrics of payment of that excise duty of ₹ 2907/- is only an attempt to wrongly avail the benefit of credit on capital goods. He also pointed out that even this small amount of Cenvat Excise duty was paid out of the credit availed on the capital goods. Since the total quantum of clearance on payment of duty is only of the order of 0.0007%, these capital goods are to be considered only as used in the manufacture of exempted goods. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y used for manufacture and clearance of finished products without payment of duty by availing the exemption as per Notification No. 30/2004 ibid. But the fact remains that a small portion of the finished products has in fact been cleared on payment of duty without availing said exemption. The Commissioner (Appeals) in the impugned order has taken the view that since a portion of the goods has been cleared on payment of duty, it cannot be held that the capital goods have been used exclusively in the manufacture of exempted goods. 6. The Tribunal in the case of Commissioner of Central Excise, Maduari V/s Eastman Spinning Mills Pvt. Ltd (Supra) had occasion to consider a similar case in which the Tribunal observes as under:- This apart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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