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2013 (7) TMI 5 - CESTAT MUMBAIInput credit denied - allegation of appellant using furnace oil as fuel for manufacturing of dutiable goods as well as job work goods & not maintaining separate account of fuel consumed in the manufacture of dutiable goods and job work goods - Held that:- As appellant are manufacturers of excisable goods as well as they are undertaking job work of excisable goods. Rule 6(2) applies where assessee is not maintaining separate account of input/input service for manufacturing dutiable as well as exempted goods. In this case appellant are not manufacturing any exempted goods. The understanding by lower authorities that job work goods are exempted goods are not sustainable and they have misinterpreted the law. As decided in Sterlite Industries Ltd. V CCE (2004 (12) TMI 108 - CESTAT, MUMBAI) input credit of duty paid on inputs used in the manufacture of final product cleared without payment of duty that manufacture of final product which are cleared by the principal manufacturer are not hit by the provision of Section 57C of Central Excise Rules, 1944. Also in the case of CCE V. J. H. Kharawala P. Ltd. (2008 (7) TMI 287 - CESTAT, AHMEDABAD) held that goods manufactured on job work basis and cleared without payment of duty cannot be considered as exempted goods since principal manufacturer has to pay duty on the same. In favour of assessee.
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