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2018 (11) TMI 910 - AT - Central ExciseCENVAT Credit - manufacture of dutiable as well as exempt goods - non-maintenance of separate records - Demand of 6% on the amount of electricity sold outside the factory - Held that:- This issue has been settled by the Allahabad High Court in the case of Gularia Chini Mills [2013 (7) TMI 159 - ALLAHABAD HIGH COURT] wherein it has been held that there cannot be a demand of 6% of the value of exempted electricity sold outside the factory in terms of Rule 6(3) (i) of CCR simply on the ground that the appellant has failed to maintain separate account on receipt of input or input services used in the manufacture of dutiable goods, namely, Sugar and exempted goods, namely, electricity. In the present case, the appellant, during the relevant period, has not taken any credit on the input services used in the generation of electricity - no input or input services has been used in the present case in the manufacture of exempted goods i.e. Bagasse/electricity - demand of 6% on the value of electricity sold to Karnataka Electricity Board is not sustainable in law. Appeal allowed - decided in favor of appellant.
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