2010 (11) TMI 815

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..... - Proviso to Notification No. 30/2004, dated 9-7-2004 there was no bar to the availment of exemption under Notification No. 30/2004 by a manufacturer availing capital goods credit. This apart, Rule 6(4) of the CENVAT Credit Rules, 2004 bars availment of credit on capital goods used exclusively in the manufacture of exempted goods, while in the present case, the duty on cotton yarn is an optional o .....

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..... e period 9-7-2004 to 31-3-2007, was confirmed together with interest and equal amount of penalty was imposed by the adjudicating authority, whose order was set aside by the Commissioner (Appeals); hence this appeal by the Revenue. 2. I have heard both sides. Initially, the proviso to Notification No. 30/2004, dated 9-7-2004 by which goods falling under specified sub-headings of Chapter 52 of .....

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..... oods used exclusively in the manufacture of exempted goods, while in the present case, the duty on cotton yarn is an optional one enabling a manufacturer to clear the goods either without payment of duty or on payment of duty. Under these circumstances, it cannot be said that capital goods are exclusively used in the manufacture of exempted goods. The assessees paid duty subsequently, namely, duri .....

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