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2015 (10) TMI 1654 - AT - Central ExciseReversal of CENVAT Credit - whether proportionate reversal of cenvat credit attributable to furnace oil is sufficient in compliance of Rule 6(3) of the said Rules or the appellant is required to pay duty equal to the 10% sale price of the exempted final products or not - Held that:- Both lower authorities have not disputed that the appellant has reversed the cenvat credit attributable to furnace oil used in the manufacture of exempted final products. Therefore relying on the decision of Hon'ble Gujarat High Court in the case of Rituraj Holdings Pvt. Ltd. (2013 (2) TMI 34 - GUJARAT HIGH COURT) wherein it has been held that if the assessee reversed proportionate cenvat credit attributable to final exempted product in this case the assessee has complied with Rule 6(3) of the Rules, is not required to pay duty equal to 10% sale price of the exempted final products. - Commissioner (Appeals) has observed that while reversal of cenvat credit, the appellant has taken the sale percentage of exempted goods i.e. agricultural implements as basis of calculation of proportionate credit, which is not correct and thereafter he denied the whole credit. The contention of the learned AR is not acceptable at all as in the show cause notice only charge against the appellant that they have contravened the provisions of Rule 6(3) and in their defence the appellant has stated that they are reversing proportionate cenvat credit. If at all there is difference, the Commissioner (Appeals) could quantify the demand which he failed to do so demanding duty from the appellant. It is not correct. Therefore, I set aside - Decided in favour of assessee.
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