2014 (3) TMI 457

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....ab Singh: This is a stay application filed by M/s Modern Dairies Ltd. (here in after referred to as Applicants) seeking waiver of pre-deposit and stay of recovery of Cenvat Credit amount of Rs. 78,30,427/- interest and equal amount of penalty imposed on them by Commissioner Central Excise Panchkula. The applicants are engaged in manufacture and sale of Ghee, Whey, proteins, Casein and Lactose f....

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....nt submits that under the Cenvat Credit Rule 2004, credit of duty paid on inputs used in the manufacture of capital goods which are exempted can not to be denied as the capital goods have been used in manufacture the final excisable goods. The capital goods are exempt for the excise duty under notification No. 67/95-CE as intermediate goods used in the manufacture of final of products. He relies u....

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....both the sides we find that the Cenvat Credit on inputs used in manufacture of exempted goods is deniable under Rule 6(1) Cenvat Credit Rule. In this case if Dairy Machinery manufactured by the applicants classifiable under Chapter heading 8434 is exempted under the notification No. 06/2006-CE dt. 01.03.2006. Therefore prima Facie the credit of duty paid on inputs is deniable in terms of Rule 6(1)....