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2013 (3) TMI 117 - AT - Central ExciseCenvat Credit - Exempted and dutiable goods - by product are to be considered or not - Reversal of Credit - Rule 6 of Cenvat Credit - held that:- the adjudicating authority in Para 18, had categorically come to the conclusion that the some of the products like Peppermint Oil, etc. were excisable and dutiable. The only question that has been incorrectly construed by adjudicating authority is that according to him, the Menthol Crystals (BP/USP Grade) is the main product and other products were not produced independently, through a separate process of manufacture and were only unintended byproducts obtained from residual material left after the manufacture of exempted goods. - this is an incorrect proposition in law. The entire provisions of Rule 6, if read together, would indicate that there has to be an exempted final product and there has to be dutiable final product. - provisions of Rule 6(2) and Rule 6(3) read together will cover the case of the assessee inasmuch as the appellant has claimed that they have reversed an amount as indicated in the provisions of Rule 6(3) of CENVAT Credit Rules, 2004. As regards Revenue’s claim that provisions of Rule 6(1) of CENVAT Credit Rules, 2004, will apply, we find that the said provision very clearly talk about the manufacture of exempted goods and there is no mention or indication that such exempted goods should be only considered as main product and the byproduct if any, cannot be a final product. - impugned order is incorrect and unsustainable - Decided in favor of assessee.
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