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TMI Blog2015 (1) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... rds service tax payable on the output services. Credit on capital goods - Held that:- part of the credit also belonged to the credit of duty paid on the capital goods. The credit on capital goods is not to be allowed only when such capital goods are used exclusively in the manufacture of the exempted final product. In the present case, the appellant s final product was not unconditionally exempted. Such exemption was based upon the value of clearances. As such, the capital goods which would be used for manufacture of the final product, all exhausting of the exemption limit, would become entitled to the credit in terms of the provision of Cenvat credit Rules. - Matter remanded back - Decided in favour of assessee. - Appeal No. 1220/2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd as such was available for utilization towards service tax payable on the output services. Ld. Advocate clarifies that after utilizing the credit for payment of output service tax, there was balance to the tune of ₹ 3,76,758/- which they transferred to their excise credit. In my view, the said transfer of credit which was availed when the final product of the appellant did not attract any excise duty, is not available on the same very ground on which the excise duty credit on the input received and utilized for the final product during the period of exemption is not available to them. 3. For better appreciation, I also reproduced para 4.4 of the impugned order:- 4.4 From the submissions of the appellants, there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of above, the case laws cited by the appellants in their defence are not relevant to their case. Thus, I find no reason to differ with the findings of the adjudicating authority on this count. Further, regarding imposition of penalty, I find that the appellants had utilized the credit knowingly for payment of duty involved in the clearance of final product though it had no relevance with the manufacture of the goods. Thus they are liable to penalty under Rule 15(1) of the Cenvat credit Rules, 2002. As is seen from the reproduced portion, the part of the credit also belonged to the credit of duty paid on the capital goods. The credit on capital goods is not to be allowed only when such capital goods are used exclusively in the man ..... X X X X Extracts X X X X X X X X Extracts X X X X
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