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2012 (5) TMI 529 - AT - Central ExciseCENVAT Credit - Whether the appellant is eligible to avail Cenvat credit paid on inputs i.e. H.R. Coils received by them for manufacture of pipes to be supplied to Gujarat Water Infrastructure Ltd. by availing exemption under Notification No. 6/2002-C.E. as amended from time to time - Held that:- H.R. Coils received by the appellant were exclusively used for manufacturing of MS pipes to be sent to Gujarat Water Infrastructure Ltd. by availing exemption Notification No. 6/2002-C.E. as amended. It is also undisputed that the appellant had maintained the separate records and also has availed the Cenvat credit of the duty paid on said inputs. We find that provisions of Rule 6(1) of the Cenvat Credit Rules, 2002 will be applicable in this case. Rule 6(1) that Cenvat credit shall not be allowed on the quantity of input which is used for the manufacture of exempted goods - have cleared that MS scrap arising out of utilisation of such H.R. Coils was on payment of duty. By any stretch of imagination, scrap cannot be considered as manufactured product at least in the case in hand before us. We also find that the General Manager of the assessee has clearly and categorically stated that the H.R. Coils which were received by them on account of Petron Civil Engineering Pvt. Ltd. were used only for the purpose of manufacturing of pipes which were cleared without payment of duty. This being the factual matrix, we find that the appellant cannot claim the benefit of Rule 6(3) by debiting the amount equivalent to 8% of the value of the exempted goods and availed Cenvat credit on the H.R. Coils received by them - Decided against assessee.
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