TaxTMI 
TaxTMI 
2011 (4) TMI 420
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....s that Sub Rule 4(6) of the Cenvat Credit Rules, 2004 states that no cenvat credit shall be allowed on capital goods which are used exclusively in the manufacture of exempted goods. They were not entitled to avail the input/capital goods credit as they have not made any duty paid clearance. The original adjudicating authority on adjudication disallowed the cenvat credit of Rs.2,95,056/- and the penalty equal to the credit disallowed along with interest. The assessee appealed against this order and Commissioner (Appeals) set aside the Order-in-Original and allowed the appeal. 2. The contention of the Revenue was on a simple point that exempted goods used in sub rule 4(6) of Cenvat Credit Rules, 2004 is meant to denote a particular pr....
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....al goods which are used exclusively in the manufacture of exempted goods or in providing exempted services, other than the final products which are exempt from the whole of the duty of excise leviable thereon under any notification where exemption is granted based upon the value or quantity of clearances made in a financial year. 4. I find that in the instant case the assessee had manufactured goods on job work basis as per Notification No.214/86. Explanation -1 of this notification explains that the expression job work means processing or working upon of raw materials or semi finished goods supplied to the job worker so as to complete a part or whole of the process resulting in the manufacture or finishing of an article or any oper....
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....Credit Rules, 2004 are capital goods which are used exclusively in the manufacture of exempted goods. The usage of word exclusively in the rule is significant. The Tribunal in the case of Sanshu Industries Vs. CCE Aurangabad reported in 2007 (220) ELT 481 (Tri. Mumbai) has held as follows: I do not agree with the above reasoning of the appellate Commissioner. The expression exclusively used in Rule 57R does not mean mainly or substantially in common English language. The use of the said expression means solely and only . As such, the credit on the capital goods can be denied only in a situation were the same have not been at all used in the manufacture of duty paid goods. As such, I do not agree with the view of the authorities belo....