TaxTMI 
TaxTMI 
2016 (12) TMI 912
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.... to Cenvat credit on capital goods received, prior to 25/12/2005, when the trial production was started and thereafter commercial production started from 04/01/2006. The appellant was registered for manufacture of Asbestos Cement Sheets falling under Chapter Heading No.68114010 of Central Excise Tariff Act, 1985 & taxable @ of 8% Adv. at the relevant time. 3. The admitted facts of the case are that the Asbestos Cement Sheets falling under Chapter Heading No.68114010 of Central Excise Tariff Act, 1985 & taxable @ of 8% Adv. But the goods, namely the Asbestos Cement Sheets/products attracted Nil rate of duty under Notification No. 06/2002-CE dated 01/03/2002, on fulfilling the condition that the said goods contained not less than 25% Fly Ash....
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....Commissioner of Central Excise reported at 2004 (05) LCX0135 (T) (DB) as follows:- The Tribunal has observed that the appellants had received the capital goods during the year 2000-01. However they could not take any credit on the capital goods as they were working under exemption. However from 01/04/2001, they started paying duty and opted for the Cenvat Credit Scheme. Therefore they are eligible to take Cenvat credit of duty on the capital goods during the year 2001-02. Under Rule 57AC(2)(a) at the relevant time, the provision was that the Cenvat credit in respect of capital goods received in a factory at any point of time in a given financial year shall be taken only for an amount not exceeding 50% of the duty paid on such capital good....
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....ibility to be determined with reference to the dutiability of the final product on the date of receipt of capital goods permitting eligibility of 50% credit on capital goods, used exclusively in manufacture of exempted goods. Accordingly, held, the credit eligibility was to be determined with reference to the dutiability of final product on the date of receipt of capital goods. 7. Having considered the rival contentions, I find that in the facts of the present case, it is an admitted fact that the Asbestos Cement Sheets, for which the respondent assessee registered with Revenue, falling under Chapter Heading No.68114010 of Central Excise Tariff Act, 1985 is dutiable. The appellant had only availed a conditional exemption for a short period....