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2019 (2) TMI 933 - CESTAT ALLAHABADCENVAT credit - whether the provision of Rule 6(3)(b) would apply in such a scenario when the goods stand cleared on payment of duty? - Held that:- The said payment in terms of Rule 6(3)(b) is meant to neutralize the cenvat credit so availed by assessee in respect of inputs which have gone into the manufacture of the exempted goods. Such neutralization would be effective only when no duty stands paid on the final product. In case the final product has already paid the duty, there is no need for any neutralization. The Adjudicating Authority has examined the said issue only from one angle i.e. applicability of Rule 6(3)(b) in case of exempted clearance and has not taken into account the entire facts and circumstances of the case. The earlier proceedings iniated against the same assessee were dealt with by Commissioner (Appeals) who vide his order dated 20.11.2009 observed that in case of exempted goods and clearance on payment of duty which is much more than the amount required in terms of Rule 6(3)(b), there is no question of further payment - also, when the appellant had paid duty on their final product they must have paid the same by utilizing the credit so availed by them in respect of common input used for dutiable as also exempted final product in which case there would be no question of further neutralization of cenvat credit. Appeal allowed - decided in favor of appellant.
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