2009 (5) TMI 297

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....ts filed written submissions and requested to decide the matter in their absence on merit on the basis of available records. 2. The relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of Cotton Yarn, classifiable under Chapter 52 of the Schedule to the Central Excise Tariff Act, 1985. On 16-7-2004 the appellants opted for exemption from central excise duty....

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..../2004-Ex (supra) allowed exemption subject to no credit availed on inputs and, therefore, denial of credit on capital goods is not proper. The appellants also contended that they have not utilized the credit in question and, therefore, imposition of penalty is not warranted. 4. I find that Rule 6(4) of Rules provides that "no Cenvat credit shall be allowed on capital goods which are exclusively u....