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2014 (3) TMI 554 - AT - Central ExciseAvailment of CENVAT Credit - Non maintenance of separate accounts - Assessee were manufacturing and clearing both dutiable and exempted products and also availing CENVAT credit on common input services without maintaining separate accounts - appellant submits that products chilly seeds, seed oil and spent chilly are only by-products and not final products to attract the provisions of Rule 6 (3) of the CENVAT Credit Rules - Held that:- On the one hand, it is their case that chilly seeds, seed oil and spent chilly are by-products which should not be considered as final products for purposes of Rule 6 of the CCR 2004. On the other hand, in an endeavour to offset the demand raised in the show-cause notice, they reversed proportionate CENVAT credit on input services used in, or in relation to, the manufacture of the said commodities and also paid interest thereon. They did so to claim the benefit of the decision in Chandrapur Magnetic Wires (1995 (12) TMI 72 - SUPREME COURT OF INDIA). This action of the assessee tacitly amounted to acknowledgement of the fact that the said commodities were exempted final products - However, the above conduct of the assessee (reversal of proportionate CENVAT credit) is certainly inconsistent with their present stand before us as regards the status of the three commodities - Conditional stay granted.
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