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2014 (12) TMI 658 - HC - Central ExciseCENVAT Credit - Credit taken on all inputs including inputs exclusively used in the manufacture of exempted final products contrary to the provisions of Rule 6(1) of CENVAT Credit Rules 2004 - Non maintenance of separate accounts - Held that:- Explanation III to sub-rule (3) of Rule 6 is of no avail to the department on the facts of the present case. Therefore, on the first substantial question of law, we concur with the finding of the Tribunal that the first respondent-assessee in this case has shown on facts that the inputs on which CENVAT credit was availed had been used in the manufacture both in respect of exempted goods as well as goods cleared on payment of duty, however, they did not maintain separate account of inputs, which is a pre-requisite in terms of Rule 6(3) and having satisfied the conditions enumerated in the said rule, they are entitled to avail the credit. Assessee has not availed CENVAT credit on the inputs used exclusively in the manufacture of exempted final product. On the contrary, the finding of the Tribunal, which is not disputed by the department, is that the inputs have been used in the manufacture both in respect of exempted goods as well as goods cleared on payment of duty without maintaining separate accounts. Since we have held that it is a case falling under Rule 6(3)(b), Rule 6(1) does not get attracted to the facts of the present case. - Following decision of Life Long Appliances Ltd., v. Commissioner of Central Excise, Delhi-III [2000 (4) TMI 90 - CEGAT, COURT NO. II, NEW DELHI] - Decided against Revenue.
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