2009 (5) TMI 297

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..... xclusively for the manufacture of exempted final product. - Exemption is not based upon the value or quantity of clearance made in a financial year. So, credit availed by the appellants is hit by Rule 6(4) of Rules. - demand of Cenvat credit is upheld - However, I find force in the submission of the appellants in respect of imposition of penalty. It appears that the appellants had not utilized the .....

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..... ed for exemption from central excise duty on Cotton Yarn falling under Chapter 52 of Central Excise Tariff Act, 1985 under notification No. 30/2004-CX., dated 9-7-2004. It has been alleged that the appellants availed inadmissible credit on capital goods of Rs. 1,08,160/- during the period September, 2005 to March, 2006 in violation of Rule 6(4) of Cenvat Credit Rules, 2004. It has further been all .....

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..... ed on capital goods which are exclusively used in the manufacture of exempted goods other than final products which are exempted from the whole of the duty of excise leviable thereon under any notification where exemption is granted based upon value of quantity of clearance made in a financial year." In the present case, there is no dispute that the capital goods were used exclusively for the manu .....

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