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TMI Blog2010 (3) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... smetics from 1-8-04 but since their clearances during 2004-05 were below to rupees one crore, they did not obtain registration; that they took Central Excise Registration on 30-6-05 as soon as their clearances crossed Rupees one crore and that they intend to avail Cenvat credit of duty on capital goods purchased during July'03 - June'04 period. The Appellant took capital goods Cenvat credit of Rs. 1,77,116/- on 30-8-05 (equivalent to 50% of the total duty on the capital goods) and took balance 50% credit of Rs. 1,77,116/- on 30-10-05. A show cause notice dt. 21-8-06 was issued to the Appellant for recovery of the Cenvat credit of Rs. 3,54,232/- alongwith interest and also imposition of penalty on them under Rule 15 of the Cenvat Credit Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant, pleaded that since the capital goods had been received during July'03 - June'04 period i.e. during 2003-2004 and 2004-2005 period and capital goods Cenvat credit in respect of these capital goods was available in terms of CCR, 2002, the capital goods Cenvat credit earned by the Appellant in terms of the provisions of CCR, 2002 was available to the Appellant on 30-6-05 in terms of the transitional provisions of Rule 11(1) of CCR, 2004, that availability of capital goods Cenvat credit has nothing to do with Central excise registration; that during the period when the capital goods were received, the Appellant being manufacturer of excisable goods, were eligible for capital goods Cenvat credit; that since they were availing the SSI exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of receipt of capital goods, and since during the period when the capital goods had been received, the finished products manufactured by the Appellant were fully exempt from duty, they are not eligible for capital goods Cenvat credit. 3. I have carefully considered the submissions from both the sides and perused the records. The capital goods, in this case, had been received during July'03 - June'04 period and were installed during Dec'03 - Aug'04 period. The production of excisable goods started from 1-8-04. Since the Appellant were availing SSI exemption under Notification No. 8/03-C.E. and during 2004-2005, the value of their clearances was within the full exemption limit of Rupees one crore, they, being exempt from registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct was eligible for Cenvat credit of the specified duties paid on inputs or capital goods received in the factory on or after 1-3-02 for use in or in relation to manufacture of final products. The term "final product" is defined in Rule 2(e) of CCR, 2002 as excisable goods manufactured or produced from inputs, except matches. Since there is no dispute that the goods manufactured by the Appellant are excisable goods, they have to be treated as "manufacture of final products". Since there is no dispute that the capital goods received were meant for use in or in relation to manufacture of final products, and since the duty whose Cenvat credit is sought to be taken is one of the specified duties in Rule 3(1), the conditions for availing Cenva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to a manufacturer of excisable goods who is not registered. In this case, the Appellant, though manufacturing excisable goods and liable to take registration in terms of Section 6 of Central Excise Act, 1944 read with Rule 9(1) of Central Excise Rules, 2002 were exempt from taking registration under a notification issued under Rule 9(2) for the reason that they were availing full duty exemption under SSI Notification No. 8/03-C.E. A manufacture manufacturing excisable goods but exempt from registration formalities under Rule 9(1) for the reason that he is availing SSI exemption and the value of his clearances during the financial are within the full exemption limit, does not cease to be a manufacturer of excisable goods and therefore, ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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