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TMI Blog2024 (7) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... e present appeal filed by the Revenue. 2. The issue involved in the present case are as under:- 1. Whether the Commissioner Appeals has erred in allowing admissibility of cenvat credit of Rs.11,06,166/- on inputs lying in stock as on 30.06.2017 and which have been used in manufacture of finished goods which have been cleared on payment of GST post 30.06.2017. 2. Whether the Commissioner Appeals has erred in allowing admissibility of cenvat credit of Rs.1,86,97,492/- on capital goods in terms of Rule 6(4) of CCR, 2004 which allows cenvat credit on capital goods used in manufacture of exempted goods after a period of two years from the date of commencement of commercial production. 3. Shri Tara Prakash, Learned Deputy Commissioner (AR) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is clearly admissible to the respondent. 4.1 As regard the second issue of admissibility of cenvat credit of Rs. 1,86,97,492/- on capital goods as per Rule 6 (4) of Cenvat Credit Rules, 2004 the respondent was not entitled to take credit for 2 years from the date of commencement of commercial production. He submits that the respondent has not availed the cenvat credit of capital goods till 30.06.2017 as the finished goods were exempt from payment of excise duty under Notification No. 30/2004-CE. Since the said notification was rescinded on 30.06.2017 and the goods manufactured by the respondent were made taxable under GST regime, the respondent was entitled to claim the benefit of cenvat credit of excise duty paid on capital goods for w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D VS CCE [1998 (98) E.L.T. 769 (Tribunal)] SRI NATARAJAN INDUSTRIES VS COMMISSIONER OF C. EX., COIMBATORE (2000 (123) E.L.T. 1016 (Tribunal)] 5. We have carefully considered the submission made by both sides and perused the records. We find that in the revenue's appeal it was contended that the cenvat credit on inputs is not available to the respondent in terms of Rule 6 (1) of Cenvat Credit Rules, 2004 which provides that cenvat credit is not allowed in respect of inputs used in the manufacture of exempted goods. As regard cenvat credit on capital goods revenue's contention is that as per Rule 6 (4) of Cenvat Credit Rules, 2004 since the respondent were engaged in manufacture of exempted goods they were not eligible for the credit for 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of goods on which GST was applicable. Therefore, the entire basis of the Revenue that only due to availing the exemption Notification No. 30/2004-CE , the cenvat credit is not admissible, is devoid of merit and without any legal basis. Therefore, we are of the view that the cenvat credit on inputs was rightly allowed by the Learned Commissioner. 5.2 As regard the cenvat credit on capital goods , we find that the same was proposed to be disallowed on the ground of Rule 6 (4) of Cenvat Credit Rules, 2004 which reads as under:- Rule 6(4)- "No CENVAT credit shall be allowed on capital goods used exclusively in the manufacture of exempted goods or in providing exempted services for a period of two years from the date of commencement o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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