2015 (6) TMI 1077

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....esent for the Respondent : Shri R.K.Mishra, DR ORDER The appellant is a manufacturer of sugar and molasses.  During the period January to March, 2007 the appellant had installed the Ethanol plant within its factory premises.   The capital goods used in the said Ethanol plant was taken as cenvat credit by the appellant.   Taking of Cenvat Credit was disputed by the Ce....

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....o some other plant, which was not operational at the material time and that the Cenvat Credit attributable to the capital goods of such other plant (Ethanol Plant) can be used for removal of sugar and molasses from the factory of the appellant. 4.  The ld. Advocate appearing for the appellant submits that the capital goods on which the cenvat credit has been taken are confirming to the def....

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....ory premises where sugar, molasses and Ethanol are the final products,  cenvat credit attributable to the Ethanol plant should also be eligible for utilization or clearance of sugar and molasses from the factory.  5.  Per contra, the ld. DR appearing for the Revenue - respondent reiterated the findings recorded in the impugned order and further submits that the Ethanol plant was ....

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....actory of manufacture of final product will be eligible for availment of cenvat credit.  There is no restriction contained in the said Rule that the capital goods used in the factory under construction situated within the common factory shall not be eligible for cenvat credit.  Further, sub-rule (4) of Rule 3 of Cenvat Credit Rules permits the manufacturer to utilize cenvat credit on pay....