2017 (12) TMI 1297

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....ondent : Shri RK Mishra, DR ORDER Per V.Padmanabhan, The appeal is against Order-in-Original No.UDZ-EXCUS-000-COM-0024-15-16 dated 03.09.2015. The appellant is engaged in the manufacture of polyester yarn falling under Chapter 55 of the first schedule to Central Excise Tariff Act, 1985. They availed Cenvat credit amounting to Rs. 50,00,611/- on capital goods. However, the department, afte....

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....g the same machine in terms of Notification No.29/2004. Consequently, she claimed that the appellant will be entitled to the Cenvat credit. 4. The ld DR justified the impugned order. He submitted that the credit was availed in the month of June, 2011 when the appellant was availing full exemption. Further, it is on record that after September, 2011, the appellant was availing the said exemption....

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....on dated 12.01.2012 to the effect that they proposed to utilize the machine also for manufacture of goods to be cleared on payment of duty. The adjudicating authority has also recorded that the appellant has used it for manufacture of one consignment which was cleared on payment of duty. 6. The whole issue to be decided is what is the relevant date for deciding the Cenvat credit eligibility - w....

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....e appellant were chargeable to nil rate of duty and therefore, these capital goods fall within the purview of sub-rule (4) of Rule 6 and hence, not entitled to Cenvat credit. The only argument advanced by the appellant is that the credit has been taken in the same financial year in which their final products became dutiable. We find that this is not a valid reason to permit such credits. 5. We ....