2007 (8) TMI 564

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....ri B.L. Meena, SDR, for the Respondent. [Order]. - The application filed by M/s. Sambandam Siva Textiles (P) Ltd., (hereinafter SSTPL) seeks waiver of pre-deposit of duty and stay of recovery of Rs. 2,29,290/-, being irregularly used Cenvat credit and interest thereon and also a penalty of equal amount imposed on the appellants under Section 11AC of the Central Excise Act, 1944. The impugned....

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....rn, in terms of Notification 30/04 C.E. dated 9-7-2004. The lower authorities have disallowed the capital goods credit on the 'Autoconer' on the ground that the same was used exclusively in the manufacture of exempted final products. The appellants had discharged the duty for the first fortnight of July '04 utilizing the credit of Rs. 2,29,290/- from the credit accrued on receipt of the autoconer ....

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....be determined with reference to the time of receipt of the capital goods in the factory of the assessee. It was also submitted that credit could not be denied on the ground that the appellant did not clear any dutiable product and there was no time limit for utilizing the credit taken on the capital goods. In this regard, the decisions of the Tribunal in Kailash Auto Builders Ltd. v. CCE reported ....

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.... 6-7-2004 deserves to be allowed. The fact that in the instant case, the assessee started availing exemption on the final products cleared by them with effect from 9-7-2004 should not be a reason to disallow the credit the appellants had earned on 6-7-2004 on  receipt of the capital  goods. The case laws cited by the ld. Consultant amply support their claim that credit could not be denie....