Cenvat credit utilisation

Dear all,

I want clarification about a firm goods cleared to defence under not.no 10/97 dt 1.3.97 (duty exemption) &  goods removed for local other than defence. All excise records maintained seperately for both. Cenvat credit taken on raw material procured for local clearances  & credit not taken for raw material procured for defence supplies. Now Capital goods cenvat credit  allowed or not. But machinery brought for ment goods for local & Defence. Please suggest me.