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TMI Blog2014 (6) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... e entertained a view that appellant was not eligible for CENVAT credit in respect of shot blasting machine which was part of the block making plant but was exclusively used for finishing the pavers manufactured by the appellants. The pavers manufactured by the appellants were exempt from payment of duty if more than 25% of furnace slag was used and the appellant was availing this benefit from March 2008. Since the appellant has used the machine for nearly 6 months in the manufacture of exempted goods only, appellant was advised that the CENVAT credit was not admissible and they should ascertain the cost attributable to the shot blasting machines since in the documents covering the importation separate price in respect of the shot blasting m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submissions made by both sides. The first question is whether the shot blasting machine can be considered as part and parcel of the block making plant and can be treated as a separate machine. On the first occasion when the matter came on 08/10/2013, the learned advocate for the appellant was requested to verify with the assessee and make a submission as to whether shot blasting machine was used for any other work other than finishing the pavers which has been cleared without payment of duty up to February 2009. Today he fairly agrees that shot blasting machine is exclusively used for pavers. He submits that shot blasting machine is basically used for ensuring that the pavers are not slippery and are not smooth faced and the shot blasti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; 8. We have considered the submissions made by the learned Standing Counsel appearing for the revenue and we have also gone through the orders passed by the authorities below. The learned Commissioner (Appeals) while allowing the appeal filed by the respondent assessee has specifically held that initially the machine was used for the manufacture of granules out of waste arising in the course of manufacture in appellant's unit, which were cleared under exemption since as per appellant's claim they were not of the requisite quality. However, gradually they were able to refine the manufacturing process to obtain granules of requisite quality and most of which quantity is used in the production of film. Their intent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rics for manufacture of dutiable yarn, exempted grey fabrics and dutiable processed fabrics in three phases. The Tribunal in that case found that there is no rebuttal by the Revenue of the stand of the appellant that the credit taken was utilized only after the commencement of manufacture of dutiable goods. 7. The only difference between the facts of Gujarat Propack case and the present case is that the appellant took the credit in September 2008 whereas the clearance of dutiable product started from March 2009. Otherwise on facts, there is similarity. In the case of Gujarat Propack also, the appellants at the time of receipt of capital goods were manufacturing only granules from waste and clearing the same without payment of duty and ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y can be asked to pay the interest which is applicable for the period from September 2008 to March 2009 when they started to manufacture goods which suffered duty. Otherwise, the issue is covered by the decision of Hon'ble High Court of Gujarat. In my view, the decision should be applied in the above manner for the benefit of the assessee and they should pay the interest for the period. 8. Another submission that was made but has not been considered by the lower authorities as well as by me is the claim of the assessee that they had not started commercial production at all. It is therefore their claim that what was happening till March 2009 was only a trial production and they were only experimenting and tried different methods and under s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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