TaxTMI 
TaxTMI 
2025 (12) TMI 217
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....ade between December, 2009 and February, 2011. At the time when the capital goods were received by the respondent in their factory, the excise duty on "Maaza" beverages was fully exempt. Hence, no duty was being discharged for the clearances of Maaza Beverages from the factory premises by the respondents. However, the respondent took CENVAT Credit for the capital goods received. 2. The Revenue proceeded to recover the CENVAT Credit availed on such capital goods on the ground that, per se, no CENVAT Credit could be taken for such capital goods which were used in the manufacture of exempted finished goods. 3. After due process, the ld. adjudicating authority, after due verification, found that the appellant had taken the credit on capit....
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....he decision of the Tribunal, Ahmedabad rendered vide Final Order No. 11362 of 2024 dated 05.06.2024, holding that CENVAT Credit eligibility is required to be seen based on the time as to when capital goods are put to use. The Ld. Counsel submits that the issue in the cited case law is absolutely identical being in respect of the same company (respondent herein) and in respect of the same goods in question viz., Maaza Beverages. In view of these submissions, he prays that the Revenue's appeal be dismissed. 6. Heard both sides, perused the appeal papers and the case-law relied upon before us. 7. We find that the issue before us is no more res integra and stands squarely covered by the decision of the Ahmedabad Bench of the CESTAT in the....
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....and the appellant in that case has approached the Supreme Court. The Hon'ble Supreme Court dismissed on the ground of jurisdiction thereafter, the appellant filed an application under Section 35(H) (1) of Central Excise Act, 1944 which is not yet decided. Therefore, firstly the judgment in the case of Surya Roshni has not attained finality either by the Hon'ble High Court or Hon'ble Supreme Court. Secondly, in the facts of Surya Roshni's case at the time of receipt of capital goods the goods manufactured there upon was exempted and the capital goods was used for substantial period right from its commencement exclusively for manufacture of exempted goods and after substantial time of use the product manufactured on the said m....
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....r the date of commencement of production as has been observed by the Tribunal is absolutely clear that the eligibility of credit on capital goods has to be taken as on date of start of production, particularly for the reason that since provision of Rule 6 (4) provides the relevant date related to manufacture of finished goods either exempted or dutiable therefore, irrespective of any date of receipt or installation of capital goods, for the purpose of Rule 6(4) CENVAT Credit Rules, 2004 the date of production of the goods has to be taken that whether on that date finished goods were dutiable or exempted. Therefore on that point the issue stand settled by this Tribunal in this case itself. The Adjudicating Authority was having limited scope ....
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....hable. In view of our above observation and finding and also in view of the observation made in earlier order 08.03.2022, we hold that appellant are legally entitled for the CENVAT Credit on the capital goods in terms of provision Rule 6(4) of CENVAT Credit Rules, 2004." 7.1. This decision was agitated by the Revenue before the Hon'ble High Court of Gujarat wherein the Hon'ble High Court, vide Order dated 27.03.2025 observed as follows: - "12. Thus on perusal of the above finding of fact arrived at by the Tribunal, it appears that the respondent assessee commenced its daily production of 600ML bottles on 29.03.2011 and before that in the months of January and February, 2011, production of Maaza RGB was shown as goods produced wh....