2015 (10) TMI 1684

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....tent were exempt from payment of duty in terms of Notification No.6/2002. During the period December 2001 to September 2004, they received various capital goods and availed credit to the extent of Rs. 19,60,869/-. They also informed the range office that they will be manufacturing both types of ceiling tiles i.e. exempted as also dutiable. However, on the audit conducted by the Revenue, it was found that the appellants were only manufacturing exempted ceiling tiles, in which case the benefit of CENVAT credit could not be available to them. On being brought the said fact to the knowledge of the appellant, they voluntarily reversed the CENVAT Credit availed by them up to 14.9.2005. Subsequently on 12.9.2006 they addressed a communication to t....

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....ively for the manufacture of the exempted final product. Accordingly, he also rejected the appeal. Hence the present appeal. 3. After hearing both the sides duly represented by Shri Raghavendra. B, Advocate for the appellant and Shri Mohd. Yusuf, Addl. Commissioner (AR) for the Revenue, I find that in terms of the provisions of Rule 6(4) of CENVAT Credit Rules, 2002, no CENVAT credit is available on capital goods which are used exclusively in the manufacture of exempted goods. The issue of availability of credit is to be decided at the time of receipt of the capital goods. As such the issue to be decided is as to whether the capital goods, which were received by the appellant, when their final product was exempt, would be eligible for....