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2016 (2) TMI 217 - AT - Central ExciseCenvat Credit - manufacture of dutiable and exempted goods - Rule 6 - Quantity of inputs and proportionate credit availed, on the manufacture of dutiable final products - Held that:- The entire demand has been worked out only on the basis of non-compliance of Rule 6(2) of CENVAT Credit Rules, 2002. Needless to mention that by virtue of Finance Act, 2010 an assessee has been allowed to reverse proportionate credit availed on the inputs that were used in the manufacture of exempted final products along with dutiable final products. Therefore, maintenance of separate inventories/stocks of inputs, maintenance of issue slips etc. became irrelevant. In the present case, the appellant all along have been claiming that they had availed CENVAT Credit only on the inputs that were used in the manufacture of dutiable final products, a fact remained undisputed by the Revenue even today, as is evident from the report of the Commissioner dated 09.07.2015. Hence, other issues raised by the Revenue about wrong calculation, reduction of demand etc. become irrelevant and accordingly not dealt with. Further, we find that for the subsequent period the department has accepted the formula adopted in availing the credit on inputs attributable to dutiable products and dropped the demands. In the result, the impugned order is set aside to the extent of confirming demand of ₹ 6,59,516/- and imposition of penalty of ₹ 3.00 Lakhs with interest and accordingly the assessee's appeal is allowed. - Decided against revenue
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