TMI Blog2022 (6) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... at 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 provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial Questions of Law which reads as under:- (I) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was correct in allowing CENVAT credit on capital good procured and installed by the assessee for the purpose of manufacture of the said goods which are exempted from payment of duty even though the purpose of installation of the capital goods and intention of the assessee is clearly manifest in the intimation they have given to the department on 08.04.2016 and the manner in which they have conducted themselves by manufacturing and clearing exempted goods constantly? (II) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was correct in interpreting Rule 6(4) of the CENVAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able goods as well as exempted goods in terms of Notification dated 09.07.2004 cannot be considered as used exclusively for manufacturing exempted goods in terms of proviso to Rule 6(4) of the CENVAT Credit Rules, 2004. 5. The said Order-in-Original dated 27.07.2019 of the Adjudicating Authority was assailed by Revenue- appellant whereby the Commissioner (Appeals) vide order dated 04.10.2019 allowed the appeal on the premise that as per amended Rule 6(4) of the CENVAT Credit Rules, 2004, w.e.f. 01.04.2016 CENVAT credit was not available on capital goods used exclusively in the manufacture of exempted goods for a period of two years. The admissibility of credit is to be decided on the date of receipt of goods and in the facts of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide order dated 27.07.2018 has adjudicated the demand in favour of the respondent and dropped the show cause notice. (iv) The CESTAT by passing directions under Rule 6(4) of the CENVAT Credit Rules, 2004, has allowed the appeal of assessee on the fact that the assessee had cleared goods on payment of duty during 2017-18 as evidenced by ER-1, filed for June 2017 and they had installed the capital goods in 2016-17 and as per amended Rule 6(4), no credit is allowed on capital goods used exclusively in the manufacture of exempted goods for a period of two years, therefore, the credit is admissible to the appellant. (v) Learned Commissioner (Appeals) inspite of the fact that capital goods were not exclusively used for exempted goods, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 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. 11. 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 CENVA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred above which the learned counsel for the revenue was not able to refute we are inclined to dismiss this appeal. 13. In the present appeal placing reliance upon the Apex Court Judgment in the case of Steel Authority of India Ltd. Vs. Designated Authority, Directorate General of Anti Dumping Allied Duties Ors.: (2017) 13 SCC 1, wherein the question of admission of an appeal on substantial question of law was considered and it was held as under:- (i) The question raised must involve a substantial question of law which has not been answered or, on which, there is a conflict of decisions necessitating a resolution. (ii) If the Tribunal, on consideration of the material and relevant facts, had arrived at a conclusion w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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