2016 (10) TMI 302

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....ocate ORDER The Revenue is in appeal against the impugned order. 2. The facts of the case are that the show cause notice was issued to the respondent on the following grounds: (a)  The respondent has taken the cenvat credit on machines i.e. capital goods which has been cleared without payment of duty and no document has been produced at the time of audit (b)  T....

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.... received back in the factory. The documentary evidence to that effect has been filed by the respondents on 28.10.2015 before the adjudicating authority and the same has not been considered but the same has been considered by the Commissioner (Appeals). Therefore, I do not find any infirmity in the impugned order to allow the credit on the capital goods to the respondents. (b) The credit taken ....

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....oard has clarified that Cenvat credit should not be denied if the inputs are used in the intermediate of the final products even if the intermediate is exempt from payment of duty. Circular No. 665/56/2002-CX., dated 26-9-2002 is also relevant, which clarifies that Cenvat credit should not be denied on capital goods used in the manufacture of intermediate goods exempt from payment of duty which ar....