2017 (4) TMI 548

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....lants are engaged in the manufacture of various particle boards falling under Chapter heading 44109090 and 44109030 of Central Excise Tariff Act 1985. The appellant had stock of capital goods spares/ consumables on which 50% credit was availed and utilised by the assessee. However, the stocks were lying unutilised while stopping the duty payment on finished goods under notification no.6/06-CE from....

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.... 3. Shri Sanjay Hasija, Ld. Supdt. (AR) heavily relied upon Rule 11 according to which he submits that once the final product became exempted the credit availed should be reversed. He submits that the appellant has not contested the duty liability at the time of adjudication therefore now the issue of demand of cenvat credit attained finality and same cannot be reconsidered at this stage. In this ....

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....ed below:- "Rule 11 - Transitional provision.- (1) Any amount of credit earned by a manufacturer under the CENVAT Credit Rules, 2002, as they existed prior to the 10^th day of September, 2004 or by a provider of output service under the Service Tax Credit Rules, 2002, as they existed prior to the 10^th day of September, 2004, and remaining unutilized on that day shall be allowed as CENVAT credi....

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.... and shall not be allowed to be utilized for payment of duty on any excisable goods, whether cleared for home consumption or for export." 5. On careful reading of the above Rule, it is clear that this provision is applicable only in respect of inputs or input services and not on capital goods. Therefore the payment of amount equivalent to the cenvat credit in respect of stock of capital goods a....