https://www.taxtmi.com/caselaws?id=211373 Rule 6(4) of the Cenvat Credit Rules, 2002 bars credit on capital goods only when they are used exclusively in the manufacture of exempted goods. Capital goods installed in a captive power plant remained eligible for Cenvat credit because the electricity generated was not used solely for exempted clearances; part of it was consumed within the factory for manufacture of the dutiable final product, sponge iron. The fact that surplus electricity was sold outside did not make the capital goods exclusively attributable to exempted goods. Credit on such capital goods was therefore allowable where the use was mixed and linked to dutiable production. en-us Sat, 07 Nov 2009 00:00:00 +0530 Fri, 16 Mar 2012 08:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211373 Rule 6(4) of the Cenvat Credit Rules, 2002 bars credit on capital goods only when they are used exclusively in the manufacture of exempted goods. Capital goods installed in a captive power plant remained eligible for Cenvat credit because the electricity generated was not used solely for exempted clearances; part of it was consumed within the factory for manufacture of the dutiable final product, sponge iron. The fact that surplus electricity was sold outside did not make the capital goods exclusively attributable to exempted goods. Credit on such capital goods was therefore allowable where the use was mixed and linked to dutiable production. Case-Laws Central Excise Sat, 07 Nov 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211373