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2016 (11) TMI 775 - AT - Central ExciseDemand - maintenance of separate records in respect of receipt, Consumption and inventory of Furnace oil used in the manufacture of dutiable final products and exempted final products i.e. Maaza as per Rule 6(2) of the Cenvat Credit Rules, 2004 - whether under Rule 6(3)(b) of the Credit Rules, the respondent is required to pay 10% of the total price of the exempted goods clear by them? - Held that: - the contention of the respondent throughout the investigation is that they are not availing cenvat credit on furnace oil used in manufacture of exempted final product as per formula calculated by them. This fact has not been contraverted by the Revenue with any tangible evidence, moreover, the Ld. Commissioner (A) has held that during the proceedings have observed that the respondent is not availing the cenvat credit on furnace oil used in manufacture of final exempted product as per the formula and dropped the proceedings. In that circumstance, reliance placed on the decision of Cadila Healthcare Ltd. [2009 (8) TMI 892 - CESTAT AHMEDABAD] where it was held that no credit stand taken in respect of that part of dutiable furnace oil which has been used in the manufacture of exempted products. The demand at the rate of 10% of value of such exempted products is not called for. Demand not sustainable - appeal dismissed - decided against Revenue.
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