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2013 (8) TMI 61 - CESTAT AHMEDABADCenvat Credit in input service when both of dutiable and exempted products are manufactured – Held that:- The Appellant, as a manufacturer of exempted products would not be entitled to Cenvat credit on such quantity of input service which is used in the manufacture of exempted goods, this being the plain stipulation contained in rule 6(1). This is subject to Rule 6(5) which has an over-riding provision which allows the availment of Cenvat credit in respect of certain specified taxable services unless they are used exclusively in or in relation to the manufacture of exempted goods. But the point to note is that merely because the Appellant manufactures exempted goods, that would be no justification to disallow to it the benefit of availing of Cenvat credit on that quantity of input service which is utilised in or in relation to the manufacture of dutiable final products - Crude oil which is subject to a further process of manufacture at the Uran plant for the production of dutiable final products is exempted from central excise duty. ONGC admittedly also produces dutiable final products. The production of those dutiable products is possible only on the continuous supply of crude oil. Held that:- The credit of Service Tax taken with respect to services availed on the platforms cannot be disallowed for the services availed with respect to dutiable exempted goods. There are no findings to the extent that Sour gas is directly sold by ONGC from Bassein and Satellite off-shore platforms which is exempted. Secondly, it is also relevant that ISD certificate issued by ONGC from their ISD registered premises cannot be questioned at the recipient’s end - Appellants have made out a prima facie case for complete waiver of the confirmed demands, interest and penalties imposed – Decided in favor of Assessee.
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