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2016 (11) TMI 694 - AT - Central ExciseRefund claim - benefit of exemption Notification No.64/1995-CE, dt.16.03.1995 - the Appellants had availed CENVAT Credit of inputs which were used in or in relation to manufacture of dutiable as well as exempted goods; during the course of audit, it was alleged that since separate records were not maintained, they were required to pay 10% of the price of the exempted goods - the Appellants had availed CENVAT Credit of inputs which were used in or in relation to manufacture of dutiable as well as exempted goods; during the course of audit, it was alleged that since separate records were not maintained, they were required to pay 10% of the price of the exempted goods - whether the refund claim justified? Held that: - the Appellants are eligible to reverse the proportionate CENVAT Credit attributable to exempted products in view of the specific provision contained under Rule 6(3)(a) of CENVAT Credit Rules 2004, which has not been considered by the authorities below. Also, in view of the retrospective amendment to the Rule 6 of CENVAT Credit Rules,2004 by virtue of Finance Act,2010 the Appellants are eligible to reverse proportionate CENVAT Credit on inputs attributable to exempted products. However, it is prudent to remand the matter to the Adjudicating authority to ascertain the proportionate credit attributable to exempted products and consider the refund application afresh in the light of above findings. Needless to mention that reasonable opportunity of hearing be granted to the Appellant - appeal allowed by way of remand.
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