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2018 (1) TMI 254 - AT - Central ExciseCENVAT credit - manufacturing as well as trading activity - appellants availing credit on common input service which was used for manufacturing of dutiable goods as well as trading activity - Rule 6(3)(i) of CENVAT Credit Rules, 2004 - Held that: - the appellant have admittedly reversed the credit attributed to the trading activity availing the option available under rule 6(3)(ii). Therefore, Department cannot insist for some other option i.e. Rule 6(3)(i). As regards the issue that the appellant was not following the condition for availing the option of Rule 6(3)(ii), it is a procedural requirement and for want of procedural requirement, substantial benefit available to the assessee cannot be denied. The option claimed by the appellant under Rule 6(3)(ii) is legally available to the appellant. However, since the learned Commissioner on merit itself denied the option of Rule 6(3)(ii) and confirmed the demand in terms of Rule 6(3)(i), he has not verified the quantum of proportionate CENVAT Credit, which was reversed by the appellant. Therefore, the matter needs to be remanded only for the purpose of re-quantification of proportionate credit as claimed and submitted by the appellant. The demand of 5% of the value of traded goods confirmed invoking Rule 6(3)(i) is not sustainable. Appeal allowed by way of remand.
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