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2017 (10) TMI 1111 - AT - Central ExciseCENVAT credit - inputs - silver nitrate, tungsten powder, hydrazine hydrate etc. which are used in the manufacture of final products - Department was of the view that since the appellant was clearing duty paid as well as exempted products, they are required to reverse the amount at the rate of 5% of the value of clearance of exempted products, in terms of Rule 6(3) of CCR, 2004 - Held that: - Revenue has not brought any evidence on record to establish that duty paid inputs have, infact, been utilized in the manufacture and clearance of exempted products which is the primary requirement to incur the mischief of Rule 6(3) - it is incumbent upon the Revenue to bring on record evidence to indicate that inputs on which cenvat credit has been availed, have been used partially in the manufacture of dutiable goods as well as partially in exempted products. In the absence of such an evidence, it is not proper to raise demand of duty on the basis of doubts. It is evident that significant quantity of silver on which credit was not taken has also been used in the manufacture of dutiable goods - In the light of fact that appellant has maintained the records, regarding receipt of duty paid inputs and use of the same in the manufacture and clearance of dutiable products, demand is set aside. Appeal allowed - decided in favor of appellant.
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