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2017 (3) TMI 652 - AT - Central ExciseReversal of CENVAT credit - manufacture of dutiable as well as exempt goods - proportionate credit availed on common input services used for manufacture of exempted goods like rectified spirit and excisable good namely electricity - whether electricity which is shown as no rate of duty in the tariff is an exempted product or not? - Held that: - though appellants may be eligible for the credit of input services used for manufacture of electricity consumed captively they are not eligible for credit of electricity sold outside. The proportionate credit has to be reversed. However there is no discussion in the orders in regard to whether appellant is using the entire electricity captively - for the limited purpose of verifying whether appellant is selling electricity outside and therefore requires to reverse the proportionate credit, the matter requires to be remanded. Extended period of limitation - Held that: - the appellant has filed regular ER-1 returns and have disclosed the credit availed by them. In such back ground, it cannot be alleged that the appellant is guilty of willful suppression of facts. Apart from the vague allegation there is no evidence to establish that appellants have willfully suppressed facts - extended period not invokable - However the demand raised for the normal period in respect of rectified spirit as well as electricity sold outside will have to be sustained. Appeal partly allowed and partly remanded.
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