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2015 (11) TMI 1094 - AT - Central ExciseDenial of CENVAT Credit - Non maintenance of separate accounts - exempted goods - held that:- Exemption has not been denied and if an assessee feels that it is not in a position to maintain separate accounts, the law provides a choice for paying the amount specified in Rules which has been paid. That being the position, prima facie, the department could not have taken a view that appellant should have availed exemption in total and not taken the Cenvat credit. The choice is available in the Rules and that should have been allowed. The only consideration that seems to have weighed in the minds of lower authorities when proceedings were initiated and orders were being passed is the fact that Cenvat credit availed by the appellant is more than the tax paid by them. It is not the case of the department that credit was taken wrongly. It is not the case of the department that exemption was availed wrongly. The department seems to be saying that exemption should have been availed and appellant should have maintained separate records or appellant should not have availed the exemption at all. In the absence of any logical or statutory provisions, supporting the stand taken by Revenue, the impugned order cannot be sustained. Accordingly, the appeal is allowed with consequential relief - Decided in favour of assessee.
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