2010 (11) TMI 815

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....ltant, for the Respondent. [Order]. - In this case, a demand of Rs. 1,99,749/- representing wrongly availed CENVAT credit on capital goods used in the manufacture of exempted cotton yarn during the period 9-7-2004 to 31-3-2007, was confirmed together with interest and equal amount of penalty was imposed by the adjudicating authority, whose order was set aside by the Commissioner (Appeals); h....

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....r to the availment of exemption under Notification No. 30/2004 by a manufacturer availing capital goods credit. This apart, Rule 6(4) of the CENVAT Credit Rules, 2004 bars availment of credit on capital goods used exclusively in the manufacture of exempted goods, while in the present case, the duty on cotton yarn is an optional one enabling a manufacturer to clear the goods either without payment ....