2015 (6) TMI 1077

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..... Mishra, DR ORDER The appellant is a manufacturer of sugar and molasses.  During the period January to March, 2007 the appellant had installed the Ethanol plant within its factory premises.   The capital goods used in the said Ethanol plant was taken as cenvat credit by the appellant.   Taking of Cenvat Credit was disputed by the Central Excise Department on the ground th .....

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..... l at the material time and that the Cenvat Credit attributable to the capital goods of such other plant (Ethanol Plant) can be used for removal of sugar and molasses from the factory of the appellant. 4.  The ld. Advocate appearing for the appellant submits that the capital goods on which the cenvat credit has been taken are confirming to the definition of capital goods and the said goods ha .....

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..... are the final products,  cenvat credit attributable to the Ethanol plant should also be eligible for utilization or clearance of sugar and molasses from the factory.  5.  Per contra, the ld. DR appearing for the Revenue - respondent reiterated the findings recorded in the impugned order and further submits that the Ethanol plant was not in operational during the disputed period.&n .....

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..... ble for availment of cenvat credit.  There is no restriction contained in the said Rule that the capital goods used in the factory under construction situated within the common factory shall not be eligible for cenvat credit.  Further, sub-rule (4) of Rule 3 of Cenvat Credit Rules permits the manufacturer to utilize cenvat credit on payment of duty of excise on any final product manufact .....

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..... d factory. 9.  Since no restrictions have been imposed in the cenvat credit rules for not taking the cenvat credit on the capital goods installed in the factory, where final goods have been manufactured by the appellant, I am of the considered view that denial of cenvat credit is not justified. Thus, the impugned order is set aside and the appeal is allowed in favour of the appellant. (Dict .....

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