- (1.) This appeal has been preferred by the Assessee under Section 35G of the Central Excise Act, 1944 against order dated 18-1-2010 passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi (for short 'the Tribunal') seeking to raise the following substantial questions of law:- (i) Whether the Hon'ble Tribunal is right in upholding admissibility of CENVAT credit taken on capital goods, at the time of receipt of which, the final product was exempted from payment of duty and thus, such capital goods exclusively used in the manufacture of exempted goods exempted vide Notification No. 30/2004-CE, dated 9-7-2004 during material period, in spite of clear provisions of Rule 6(4) of the Cenvat Credit Rules, 2004 not allowing CENVAT credit on such capital goods used exclusively in the manufacture of exempted goods? (ii) Whether the Hon'ble Tribunal is right in taking a far stretched view of 'exempted goods' by bringing in the concept of conditional and unconditional exemption far beyond the scope of definition of 'exempted goods' as specifically provided under Rule 2(d) of the CENVAT Credit Rules, 2004 itself?
(2.) The Assessee is manufacturer of cotton yarn and other items. For period from January, 2005 to March, 2005, it cleared goods. Under Notification No. 30/2004-CE, dated 9-7-2004, it claimed CENVAT credit on capital goods used in the manufacturing. The amount involved was Rs. 75,798. The adjudicating authority after issuance of notice confirmed the demand of duty on the ground that since the final goods were exempted, the CENVAT credit was not admissible in view of Rule 6(4) of the CENVAT Credit Rules, 2005. The order-in-original was upheld by the Appellate Authority. On further appeal by the Assessee, the Tribunal set aside the same, holding that it was not a case of availing of CENVAT credit in respect of capital goods used in manufacture of exempted goods as by virtue of Notification No. 29/2004-CE, dated 9-7-2004, 4 per cent duty was payable on the manufactured goods.
(3.) We have heard learned Counsel for the Appellant.;