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2009 (10) TMI 341 - CESTAT, MUMBAICenvat Credit- The appellants are manufacturing the dutiable as well as the exempted goods and were availing Modvat credit on the inputs used in the manufacture of process. It was seen that the appellants have availed Modvat credit on inputs used in manufacture of aforesaid exempted final products cleared by them for export of without payment of duty which was in contravention of Rule 57C of the Central Excise Rules, 1944. Since the appellant was manufacturing both exempted as well as dutiable products using common inputs, they were required to reverse 8% of the value of the final products under provisions of Rule 57CC of the Central Excise Rules, 1944. On being pointing out, they reverse Rs. 1,25,210/-. Held that- the ratio of Repro India Ltd. v. Union of India is squarely applicable in the facts and circumstances of this case, wherein it was held that Cenvat credit available in respect of inputs used in manufacture of final products being exported irrespective of the fact that the final products are otherwise exempt. With these findings, I hold that the appellant is entitled for Modvat credit on the inputs in question as the exempted final product were exported. Accordingly, the appeal is allowed with consequential relief.
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