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2017 (11) TMI 606 - AT - Central ExciseCENVAT credit - the gist of the contention in the appeal is that for applying the formula in Rule 6 (3A) (c) (iii) the department has taken the total credit availed on input services, whereas, only the total common credit should have been taken - The department was of the view that in the formula, the total credit availed on input services has to be applied and not the total common credit on input services. Held that: - The appellant is using input services exclusively for dutiable goods and are availing entire credit on such input services. They are also availing certain other input services which are used commonly for manufacture of dutiable goods and trading (exempted service). They are not maintaining separate accounts. The first contention of the appellant is that Rule 6 provides for the procedure to avail credit when common inputs/input services are used and therefore this entire Rule i.e., Rule 6, has to be interpreted so as to pertain to areas where common credit is availed. I am not able to agree with this argument of the Ld.Counsel for appellant. The Rule provides for obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services. Therefore a manufacturer who manufactures both dutiable goods and exempted goods and provider who provides taxable and exempted service would come within the ambit of the said Rule. The appellant has sought to be outside the purview of Rule (6) for the input services used exclusively for dutiable goods, and then seeks to apply the formula prescribed in sub-rule (3A) in respect of common input services used for dutiable and exempted service (trading). In sub clause (iii) of Rule 6 (3A) (c), it is stated that P denotes total Cenvat credit taken on input services during the financial year. There is no ambiguity in the words or in the formula prescribed therein. The rule uses the words total credit on input services and the same cannot be stretched to read as total common credit on input services. Appeal dismissed - decided against appellant-assessee.
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